Group term life insurance?

A Hunch

CONGRATUATIONS!!! You got a raise and now you make more than $50000!! It's imputed income. It's not a deduction. It increases your taxable income for the premium. In very simplistic terms: If the company is paying $4.50 a month in life insurance coverage and you are earning $52000 a year ($2000 a month over $50K), your income is increased: $.17 Where did this come from: =2000/52000 = .038 = 4.5*.038 = $.17

Bill

Hunch is right. My retirement came with life insurance of 100% of my last year's salary. The amount over $50k is taxable and I receive a W-2 every year. It does sound like your pay level, thus the amount of life insurance, increased. The tax amount you'll pay is less than the premium if you had to purchase it. Be thankful, not everyone has this employer benefit.

Trivial One

Federal law requires that you be taxed on the value of employer-provided group term life insurance in excess of $50,000. My guess is the value of your insurance exceeded $50,000 for the first time this year (is it tied to your annual pay--most are--and perhaps a recent raise bumped it over) and you are now being taxed on it. The paycheck stub indicates the amount of tax withheld.

Rick B

First of all, only your payroll department can answer that. But, stop buying life insurance through your employer. Unless you have medical problems, it is typically very expensive. Buy 30 year level term equal to 8x to 10x your annual income (depending on who relies on your income and your current debts and savings).

StephenWeinstein

You have it because the insurance because the company decided to give it to everyone. You are paying tax on it because the law is that if they give you more than a certain amount of it, then you have to pay tax on it.

Eric

Get it

Insurance Pickle.com

Because they were doing it wrong for the first 3 years.

Anonymous

I find it difficult to believe your claim that HR 'won't answer you.' Troll fail.