On a pay assertion, the abbreviation “GTL” usually denotes Group Time period Life insurance coverage. This represents the worth of employer-provided life insurance coverage protection exceeding $50,000, which is taxable earnings to the worker. For instance, if an employer offers $100,000 in life insurance coverage, the price of the surplus $50,000 protection is calculated based mostly on IRS tables and included within the worker’s taxable wages.
Employer-provided life insurance coverage is a typical profit, providing monetary safety to workers’ beneficiaries. Nevertheless, resulting from IRS laws, the price of protection above a sure threshold is taken into account a taxable fringe profit. This tax legal responsibility is usually small, however understanding this deduction permits workers to precisely reconcile their pay statements and keep away from confusion throughout tax season. Moreover, this provision has been in place for many years, reflecting the federal government’s strategy to employer-sponsored advantages and their taxation.
