Using the following information, calculate the imputed income that MUST be included in the employee’s...

Step 1: Calculate excess GTL coverage

Employee GTL coverage =$78,000 × 2 = $156,000

Excludable amount =$50,000

Taxable excess =$156,000 - $50,000 = $106,000

Step 2: Use IRS Table for GTL Taxable Rates (for age 53: $0.23 per $1,000 of coverage)

$106 × $0.23 = $24.38 per month

References:

IRS Publication 15-B (Taxable Group Term Life Insurance)