Group Term Life Law & Legal Definition
Group term life (GTL) is employer- provided life insurance coverage. The premium for coverage in excess of $50,000 is taxable and must be reported as additional income on an employee's Form W-2.
Although the fair market value of group term life insurance is subject to federal income tax, it is not subject to federal income tax withholding. However, its value is subject to withholding for social security and Medicare taxes (commonly referred to as FICA taxes). The value of group term life, however, is not subject to FUTA tax. The first $50,000 of GTL on the employee can be excluded from the employee’s taxable compensation. GTL on an employee’s dependents can be treated as a de minimus fringe benefit if the coverage on any dependent covered by the policy is $2,000 or less. If the dependent coverage on any dependent is greater than $2,000, then the FMV of the entire benefit must be included in the employee’s income based on the highest face value.
Legal Definitions
Search Definitions
Get a Term Defined
- Request a legal definition! Submit a term you need defined.
- » Request Legal Definition
Submit a Definition
- Submit a Definition Help us build our database. Free listings for attorneys.
- » Submit a Definition
Help Build USLegal
- Join our Team and help build USLegal. Many opportunities for participation so Join our Network.
Build USLegal
Read a Law Digest
- Need to read the law or find an answer to a legal question? Visit our Law Digest for the largest selection of law digests and answers available.
Go to Law Digest
Form Packages
- Select from our most popular legal form packages.
- » Bankruptcy
- » Contract for Deed
- » Divorce
- » Employment Packages
- » Home Sales
- » Incorporation
- » LLC Formation
- » Landlord Tenant
- » Mutual Wills
- » Name Change
- » Personal Planning
- » Partnerships
- » View All Packages
Legal Life
- Organize your legal life today! View our free online guide to creating a Life Documents File and related products.
- » Life Documents File
- » Personal Planning Package
- » Life Documents Packages
- » New Parents
- » Newlyweds
- » Baby Boomers
- » Military
- » Other
Form Drafting
- Can′t find the form you need, or need a form we offer revised for your situation? Submit your request and our attorneys will review the request and let you know if the form can be provided.
Submit a drafting request...
