Company paid life insurance over $50,000

Glenda

I am confused about this topic. Should the benefit be taxable or not? If the premium rate is .18 per thousand of coverage, how do I calculate the amount of taxable income on a bi-weekly pay period?

Down_the_Middle

The IRS requires that employer provided life insur which exceeds $50,000 is taxable to the employee. The IRS has a table from which you "impute" the income by calculating the excess insurance times the rate. i don't have the exact web address handy, but going to the IRS site should give you more direction.

Dorie

Its called the Table I rates and they were updated in 2000. they are available at the IRS website.