Group Term Life

We want to make you aware of an important payroll update regarding company‑provided Group Term Life Insurance.

Starting with the second pay in January, the IRS‑required taxable fringe benefit for Group Term Life coverage over $50,000 will now be calculated and applied each pay period. This change ensures accurate and timely reporting of the taxable fringe benefit and prevents large year‑end adjustments.

What this means for you:

• If your employer‑provided life insurance coverage exceeds $50,000, the taxable value will appear on each paycheck stub.
• This amount is not a deduction; it is taxable income required by federal regulations.
• You may notice a small increase in taxable wages and corresponding taxes withheld.

There is no action required on your part. This update simply aligns our payroll process with IRS guidelines and provides more consistent reporting throughout the year.

If you have questions about how this affects your paycheck or want to review your coverage, please contact Andy McKee or Michael Fox.