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Most payroll software packages do not calculate the taxable fringe benefit
associated with a company providing employees with group term life insurance.
This calculator allows you to quickly compute the taxable fringe benefit amount
to include on employee's salaries and wages. Or perhaps you just wish to
validate a payroll software package or someone else's computations. Period
Data Input
When entering in the from and to dates for the periods of
coverage, remember that the period of coverage includes the from date and also
includes the to date in the date count. Be careful not to have overlapping
dates.
For example, lets say an employee has a annual salary increase on 06/01/2000 and the
employer provides basic group life insurance coverage equal to one times annual
salary. The employee also has been with the employer for the entire
year. There would be two periods. The first period of coverage
would be from 01/01/2000 to 05/31/2000. The second period of coverage
would be from 06/30/2000 to 12/31/2000.
If there are any questions, please review the following article, IRC
Section 79 - Imputed Income on Group Term Life Insurance Intro.
IMPORTANT: No record of the data you are entering is saved anywhere by
Kenneth Jarvis, LLC. After completing this calculation, you should have
your tax professional review it for accuracy. Please read
disclaimer.
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