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There is a lot of information on the paycheck and pay stub regarding income and the amount subtracted by an employer due to insurance coverage. One thing you may or will notice, for the most part, will be Group Term Life Insurance, or GTL. If you look closely at GTL or find some similar reference on your paycheck, it means it’s included in your employee benefit program.
Depending on the amount of coverage, your employer may pay the premium for the insurance, and you may be liable for taxes on it. In this post, we will learn how to get your paystub from GTL.
What is group term life insurance?
Group-term life insurance is just what it sounds like: life insurance for a group. One of the more common forms, which most people participate in, is an employee benefit package. As with other forms of these packages, you can select one or multiple beneficiaries.
The amount your employer covers may be a multiple of your annual salary, such as one or two times your salary. You may also be required to purchase extra coverage out of pocket.
Due to this term life insurance, your coverage isn’t permanent. It stays at a place as long as you’re working for that employer. When you leave the job, you can perhaps convert to an individual-term life policy.
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How is group term life insurance taxed?
Taxability in group-term life insurance is nil for an employee for a limited amount. Technically, suppose employers’ coverage is more than $50,000. In that case, the excess amount is a non-cash fringe benefit, and the premium for the same extra coverage becomes taxable income for the employees.
When the employer provides insurance coverage for an employee’s dependents under group term life policies, tax implications may arise. If the amount covered is $2,000 or less, it is not taxable to the employee. If the amount of coverage exceeds this, then the premiums paid on the coverage for the dependents could be treated as income and consequently taxed as received by the employee. If coverage of a dependent exceeds $2,000, then all of the premium paid on that amount is considered taxable.
The amount reported on your paystub for group term life insurance defines the taxable benefit. When you get a W-2 benefit from your employer at the end of the tax year, it will report the total cost of any kind of group term life insurance that you receive over $50,000 and hence taxable. This amount will appear in box 12c of your W-2 and will also be added to your income for boxes 1, 3, and 5.
How Are Your Taxable Premiums Being Calculated?
In IRS Publication 15-B: Employer’s Tax Guide to Fringe Benefits, there is a table that employees can use to find out the amount of excess coverage based on the worker’s age.
For instance, if you were a worker and your age was 45, your premium would be taken at 15 cents per month for every $1,000 in coverage. The first $50,000 of coverage isn’t taxed, so if you have $200,000 in total coverage, you’d be taxed on the cost of $150,000 in coverage, or $270 for the whole year.
Suppose you have already paid at least some cost through payroll deductions. For instance, if you had spent a total of $100 over a year, only the remaining $170 would be added to your taxable income.
Pros & Cons of Group Term Life Insurance:
The following are the pros and cons of group term life insurance and receiving your pay stub from Paystub GTL:
Pros:
- Guaranteed, which might be easier to get once you are older, or even not perfect when it comes to health.
- It is cheaper to buy a life insurance policy on your own, mainly because employers cover a portion of the premiums.
- Having term life insurance at work can give you some kind of financial security, just in case you do not have any other types of life insurance.
Cons:
- Premiums for any group term life insurance that exceeds $50,000 are considered to be taxable income.
- The $50,000 of life insurance, which is non-taxable, may not be enough if you have a family or another kind of financial dependent.
- You cannot take it with you when you leave the job.
Conclusion:
If your employer offers group term life insurance, you won’t be taxed on the first $50,000 of your coverage, so there is no downside to accepting it. But if you need more life insurance, adding to your employer coverage means paying some taxes, but it is still an inexpensive way of getting the insurance that you need.
Now you know how to get your pay stub from the paystub GTL, and if you get stuck anywhere, then at any moment, you can come to this article for assistance and get your help anytime you need it!
Disclaimer: Stubcreator is not affiliated with GTL or its Associates. GTL brands or logos are trademarked or registered trademarks. The article general guidance for GTL paystub access. Refer to GTL’s official resources and consult HR for specific details.
FAQ's
Where can I access my GTL pay stubs?
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Log in to the GTL member portal using your credentials. You can usually find a dedicated section for pay stubs or financial records.
What if I forgot my GTL member portal login details?
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Use the "Forgot Password" option on the portal's login page. Follow the instructions to reset your password or retrieve your username.
How often are GTL pay stubs updated on the portal?
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Pay stubs are typically updated according to your payment schedule, which can be weekly, bi-weekly, or monthly, depending on your arrangement.
Can I download and print my GTL pay stubs?
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Yes, you can usually download and print your pay stubs from the GTL member portal. This helps in maintaining a physical record of your earnings.
