Anonymous
Anonymous asked in Business & FinanceInsurance · 1 month ago

Does long-term disability and group term life insurance count on an employee’s paycheck earnings?

I was wondering since it’s added AND deducted on paycheck. So, if the employee makes $1990 biweekly, and the LTD and GTD ($10 in total) are added to the earnings, does he actually make $2000 biweekly?

4 Answers

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  • 1 month ago

    It depends on if the premiums you pay are pre-tax or post tax.

    • Anonymous
      Lv 7
      1 month agoReport

      No it doesn't MBRCATZ.  You don't pre-tax either one of those benefits.

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  • 1 month ago

    Sorta.  But, if the amount of GTL (group term life) is $50,000 or less, then it's not taxed at all.  Also, the LTD does not have to be added to income, but if it's not, the income is taxable.

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  • 1 month ago

    Yes, you really earned $2000.

    The $10 is called imputed income.  It's a fancy name for "non-cash earnings".

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  • Judy
    Lv 7
    1 month ago

    No, but it's taxed. That's why it's added before tax is calculated, then subtracted back out.

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