Calculating the Value of Group Term Life Insurance
- Topics:
- Payroll
- Tags:
- Benefits,
- Payroll Taxes.com,
- Life Insurance,
- Insurance,
- Human Resources,
- Free Trade,
- Financial Planning,
- Finance,
- Corporate Insurance,
- Business Operations,
- ...
- Source:
- Payroll Taxes.com
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Overview: This article is about one of the more common benefits that employers provide employees is group term life insurance and explains about how it is taken for calculating tax. Unlike other fringe benefits whose taxable value is based on the cost to the employer, group term life insurance is treated differently. The general rule for taxing fringe benefits is that all fringe benefits are taxable to the recipient based on the fair market value, and the provider of the benefit is responsible for withholding federal income taxes, FICA taxes (social security and Medicare), and paying FUTA taxes. The taxes may be withheld from the recipient’s cash compensation. In this article a few guidelines are provided that if followed by the employer they should be able to provide employees with group term life insurance and be able to calculate and report the value of the benefit properly.
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Format: HTML | Date: Jan 2003 | Pages: 1
