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Life Insurance
Editor's Note: Make sure employees are covered with proper life insurance.
Overview: Life insurance is a common benefit offered by employers to their employees. Employees who get life insurance can designate a beneficiary to receive payments on their policy in the event of their death.
With limited exceptions that are stated in the policy (a common example being suicide), the covered individual's beneficiary will receive payment if the insured dies for any reason. Getting the coverage helps reassure the policy holder that his or her family will be protected from an abrupt loss of income.
Trends: In many states, laws have been created that keep employers from discriminating against employees or potential employees for off-duty participation in undesirable but legal conduct, such as smoking. However, when it comes to life insurance, some of those laws do allow higher premiums for smokers.
Ashley Shaw, JD, Legal Editor
Latest items in Life Insurance
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Taxation of Employee Compensation
Employees' salary and fringe benefits are subject to federal income taxes, Social Security and Medicare taxes, and federal unemployment insurance tax. However, certain cash and noncash fringe benefits may be offered to employees on a tax-free basis, while an otherwise tax-free fringe benefit becomes taxable compensation to employees if employers do not meet the rules for that particular fringe benefit .This section assists HR professionals in determining which fringe benefits (e.g., company car, health benefits) and other compensation (e.g., bonuses, awards) are taxable or not.
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Calculation of Excess Group Term Life - Worked Example
Employers are required to report the life insurance premiums applicable to employees, based on an IRS table, for employer-provided life insurance premiums with benefit amounts in excess of $50,000.
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Taxation of Employee Compensation: Alabama
In-depth review of the spectrum of Alabama employment law requirements HR must follow in respect to taxation of employee compensation.
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Taxation of Employee Compensation: Indiana
In-depth review of the spectrum of Indiana employment law requirements HR must follow with respect to taxation of employee compensation.
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Taxation of Employee Compensation: Pennsylvania
In-depth review of the spectrum of Pennsylvania employment law requirements HR must follow in respect to taxation of employee compensation.
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Taxation of Employee Compensation: California
In-depth review of the spectrum of California employment law requirements HR must follow with respect to taxation of employee compensation.
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Taxation of Employee Compensation: Georgia
In-depth review of the spectrum of Georgia employment law requirements HR must follow with respect to taxation of employee compensation.
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Taxation of Employee Compensation: Ohio
In-depth review of the spectrum of Ohio employment law requirements HR must follow with respect to taxation of employee compensation.
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Taxation of Employee Compensation: New York
In-depth review of the spectrum of New York employment law requirements HR must follow with respect to taxation of employee compensation.
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Life Insurance, Disability and Compensation for Time Not Worked
Employers often offer benefits that are not legally required in order to recruit and retain employees. This section provides an overview of common benefits, such as life insurance, Accidental Death and Dismemberment (AD&D) insurance, short-term and long-term disability benefits, and different forms of paid leave (e.g., vacation time, personal time, sick leave, holidays, jury duty leave, bereavement leave and sabbaticals).
About this topic
HR guidance on life insurance coverage.