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?
It depends on if the premiums you pay are pre-tax or post tax.
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.
- A HunchLv 73 months ago
Yes, you really earned $2000.
The $10 is called imputed income. It's a fancy name for "non-cash earnings".
- JudyLv 73 months ago
No, but it's taxed. That's why it's added before tax is calculated, then subtracted back out.