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Group Term Insurance

Does your employer provide life insurance? Here are the tax consequences

Compensation and Benefits, Employee Benefits, Employees, Individual Income Tax, Life Insurance, Tax Planning /

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefits package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax on income you don’t receive. The first $50,000 of group term life insurance coverage that your employer provides is excluded […]

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The tax implications of employer-provided life insurance

Employee Benefits, Employees, Federal Taxes, Life Insurance, Local Taxes, Medicare Taxes, Social Security, State Tax, Tax, Tax Planning /

Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income” The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything

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