Employer-paid premiums on group-term life insurance in excess of $50,000 coverage are taxable to the employees based on the cost of the excess.

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Under IRS regulations, employer-paid premiums for group-term life insurance in excess of $50,000 coverage are considered taxable income to the employee. The taxable amount is based on the cost of the excess coverage, which is determined using IRS tables.

Employer-Paid Premiums on Group-Term Life Insurance in Excess of $50,000