The IRS requires the cost of group term life insurance over $50,000 to be included with your employees’ wages. The IRS refers to this taxable portion of the employer paid benefit as a fringe benefit. It is also referred to as imputed income. These requirements are outlined in IRS Publication 15B. For more information on Publication 15B visit the IRS website at https://www.irs.gov/publications and look for 15B.
What is imputed income?
