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October 2001
Q.I
provide more than $50,000 in group term life insurance to my employees
and charge them for part of the premium. How does their contribution
affect the tax on the amount over $50,000?
A. If
the group term life insurance provided to an employee exceeds $50,000,
the employee must include in gross income the amount of such excess
coverage. This amount is determined by using the Uniform Premium Table
I. The amount determined to be includible in the employee's gross income
from Table I is directly reduced by any actual contribution made by
the employee.
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