What is the GTL on my paycheck?
What is the GTL on my paycheck?
Group term life insurance (GTL) is a common benefit provided by employers. Your employer may pay the premiums for this coverage, rather than passing them on to you. Group term life insurance becomes a taxable benefit when the coverage amount exceeds $50,000.
What could GTL stand for?
Group Term Life
If you see GTL which stands for Group Term Life on your paycheck, it means your employer has elected this organization-wide benefit that essentially pays your beneficiaries a portion or full amount of your annual salary.
Is GTL subject to federal income tax?
The cost of employer-provided group-term life insurance on the life of an employee’s spouse or dependent, paid by the employer, is not taxable to the employee if the face amount of the coverage does not exceed $2,000.
Is GTL included in w2 wages?
Group Term Life Insurance. If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2.
What is GTL w2?
When an employee spots GTL on their paystub, it means that it is a taxable benefit to the employee, and the W-2’s they receive at year end represents the total cost of all group insurance the employee got that was more than $50,000 and will be taxable.
Is GTL a deduction?
On your paycheck under Deductions, you will see “GTL” with a benefit amount. This amount is not the amount deducted from your paycheck, but instead is the value of the taxable benefit that is used to calculate a deduction for social security (6.20%) and Medicare (1.45%) taxes on your paycheck.
How do I report GTL on my w2?
GTL imputed income is reported on the Form W-2 as wages (Box 1), SS wages (Box 3), Medicare wages (Box 5), and in Box 12 using Code “C”.
What box is GTL on w2?
box 1
Group Term Life Insurance. If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2.
Is GTL pre or post tax?
Therefore, most employers have structured payroll provide that employees pay for voluntary GTL coverage in excess of $50,000 (basic and voluntary combined) exclusively on an after-tax basis. GTL insurance for a spouse or dependent is excludible from the employee’s income only if the coverage amount is $2,000 or less.
How does group term life work?
What Is Group Term Life Insurance? Group term life insurance is a type of term insurance in which one contract is issued to cover multiple people. The most common group is a company, where the contract is issued to the employer who then offers coverage as a benefit to employees.
How is group life insurance paid out?
Group life insurance is often provided as part of a complete employee benefit package. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums. The amount of your coverage is typically equal to one or two times your annual salary.
What is GTL policy?
Group term life insurance policy refers to the insurance coverage that is provided to a group of people. It is intended to provide monetary guarantee to the beneficiary of the covered under the group term life insurance plan in the case of death of the insured.
What does GTL stand for on paycheck?
GTL stands for Group Term Life , which is the life insurance the University carries on your behalf (two times your salary). All life insurance greater than $50,000 is subject to FICA taxes. The insurance policy is an employer paid benefit but we must withhold FICA taxes on any amount exceeding the $50,000 per IRS regulations.
What does GTL stand for?
GTL stands for Gym, Tan, & Laundry. It was made popular by the cast of Jersey Shore on MTV. It could also be an acronym for Gas To Liquid. Tags: gtl, laundry, jersey shore, acronym and initialism, mtv.
What does GTL mean on a check stub?
A: GTL represents the words Group Term Life . As required by law, the portion of life insurance benefits that is provided to you by DPS that exceeds $50,000, is taxable earnings to you. This amount is added to your Federal, State, and Medicare taxable earnings for W-2 reporting.
What does GTL mean payroll?
GTL stands for Group Term Life (payroll taxable benefit) Suggest new definition. This definition appears frequently and is found in the following Acronym Finder categories: Business, finance, etc.
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