Pre Tax Life Insurance Premium

System

I have a question and need clarification:

If an employee pays 100% of the dependent life insurance premium and has the premium deducted through payroll on a pre-tax basis, is the face value of the benefits/proceeds taxable?

I always had the understanding that dependent life insurance premiums paid by the ee should NOT be pre-taxed.

Thanks for taking time to respond.
KB

FunHRBanker

You are correct that dep. life premiums are not pre-tax. Our dep. life policy has a $10,000 death benefit for spouse and $5000 for children. I haven't seen any regs on taxing those amounts. Life insurance policies over $50,000 are taxable.

System

Thanks for your immediate response. I haven't found any tax regs on this also. This helps confirm my position on this matter.
KB