If you see GTL which stands for Group Term Life on your paycheck, it means your employer has elected this organization-wide benefit that essentially pays your beneficiaries a portion or full amount of your annual salary.
Also, how is GTL taxed? GTL income. Under Internal Revenue Code Section 79, employer paid life insurance amounts in excess of ,000 are considered taxable income to you. Multiply the monthly income by 12 and divide by 26 to find the amount added to your paycheck each month.
Simply so, what is imputed income for group term life?
Imputed income is the value of the income tax the Internal Revenue Service (IRS) puts on group-term life insurance coverage in excess of ,000. In other words, when the value of the premiums paid for by employers becomes too great, it must be treated as ordinary income for tax purposes.
How do you calculate imputed income?Take the employees coverage amount, and subtract ,000. Divide the excess amount by 1000, and then multiple it by the monthly cost for 2017, according to the price table. If the employee is paying for any of the insurance costs themselves, subtract it off.