Figure Out Tax Perks of Group Term Life — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Q. I am starting work for a second employer while retaining my existing job. Both companies provide group term life insurance coverage. Does the $50,000 tax-free limit apply to each one?
A. No. An employee may receive up to $50,000 of employer paid, group term life insurance as a tax-free fringe benefit. Any excess is taxable to employees under IRS-prescribed tables. This $50,000 tax-free cap applies to total coverage from all employers that provide simultaneous coverage. If two or more employers provide insurance coverage exceeding $50,000, the amounts reported as wages on your W-2s for 2008 will be too low.
The FMLA opens a whole new area of potential risks and legal hoops to jump through. But it also hands you some additional tools to protect your company and effectively administer problematic leaves of absence. This session explores both....Click here to find out more.