A. No. An employee may receive up to $50,000 of employer paid, group term life insurance as a tax-free . 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.
Tip: You will have to correct any errors when you file your return. See IRS Pub. 17, page 49, at www.irs.gov/pub/irs-pdf/p17.pdf for more details.