Excess Group Term Life Insurance & Your Paycheck
Regent provides life insurance for its regular employees at a rate of twice your annual income. If twice your annual income equals more than $50,000, a certain additional amount (based on your age and salary) is added to your taxable income once a month. This is because the IRS has determined that any life insurance that employers provide over $50,000 per year is taxable at a certain rate as an excessive benefit. The bottom line is that your taxable income is higher than your actual income because of this additional amount.
Should you have any further questions, please contact the payroll office at x4054.