Your paycheck and pay stub contains numerous information about your income and the amount your employer subtracts from it such as insurance coverage. One such thing you will notice will be Group Term Life Insurance (GTL). If you watch closely towards GTL, or find a similar reference on your paycheck this means it’s included as a part of your employee benefit program.
However your employer might pay the premiums for the insurance, you can owe tax on it which depends on the amount of coverage you’re provided. In this article we will understand how to acquire your paystub from GTL.
What is a Group Term Life Insurance?
Group Term Life Insurance is exactly what it sounds like: A life insurance policy which covers a group of people. This type of insurance is offered as a part of an employee benefit package. As with other types of packages, you can choose one or more beneficiaries.
The amount of coverage your employer provides might be a multiple of your annual salary, like one or two times what you make. You might also have to buy additional coverage at your own expense.
Because this term life insurance, your coverage is not permanent. It remains at a place as long as you’re working for that employer. If you decide to leave the job, you might have the option of converting to an individual term life policy.
How is Group Term Life Insurance Taxed?
Group Term Life Insurance is tax-free for the employee up to a limited amount. Technically, if employer-coverage is greater than $50,000 then the excess amount is considered to be a non-cash fringe benefit and the premium for the same extra coverage becomes taxable income for the employees.
There can be tax implications if the employer-provided group term life insurance is offered for an employee’s dependents. If the coverage amount is $2,000 or less, then it’s not taxable to the employee. The premiums on the coverage for the dependents over that amount could be treated as a taxable income for the employee. If the coverage amount exceeds $2,000 then the whole amount of the premium is considered to be taxable.
The amount shown on your paystub for group term life insurance defines the taxable benefit. When you receive 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 in excess of $50,000 and hence taxable. This amount will be shown in the box 12c of your W-2 and will also be included in your income for the boxes 1,3 and 5.
How is your Taxable Premiums being Calculated?
IRS has a table in its Publication 15-B: Employer’s tax guide to Fringe Benefits, that the employees can use to determine the amount of excess coverage, based upon the worker’s age. Example, if you’re a worker working and your age is 45 years, your premium would be calculated at 15 cents per month for every $1,000 in the 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 full year.
If you have already paid at least some of the cost via payroll deductions. For example, you had paid a total of $100 over the course of a year, only the remaining $170 will be included in your taxable income.
Pros & Cons of Group Term Life Insurance:
There are advantages and disadvantages of group term life insurance as well as getting your paystub from the paystub GTL. Below mentioned are some of them:
- Guaranteed, which can make it easier to get even if you’re older or not perfect in your health
- It is more affordable in buying a life insurance policy on your own, especially when employers pay parts of the premiums
- Having a term life insurance at work can offer you some financial security if you can do not have any other life insurance
- Premium for any group term life insurance which is over $50,000 are known as taxable income
- The non-taxable amount of $50,000 in life insurance may not be acceptable if you have a family or any other kind of financial dependents
- You cannot take it with you if you leave your job
If your employee offers group term life insurance you wont be taxed on the first $50,000 of your coverage so there is no downside in accepting it. In case you need more life insurance, adding to your employer coverage may mean paying some taxes, but it is still an inexpensive way of getting the insurance which you need.
Now you know how to get your paystub from the paystub GTL and if you are stuck up anywhere, then you can come to this article anytime for assistance and get your help anytime you need!
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.
Where can I access my GTL pay stubs?
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?
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?
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?
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.