Question

43) What is the maximum amount of employer provided group term life insurance that can be excluded from an employee's income?

A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000

Answer 1

The maximum amount of employer-provided group term life insurance that can be excluded from an employee's income is $50,000.

Step-by-step explanation:

The maximum amount of employer-provided group term life insurance that can be excluded from an employee's income is $50,000. This exclusion is provided under Internal Revenue Code Section 79. Any employer-provided coverage over $50,000 must be included in income, and the value of the coverage (above $50,000) is subject to income and payroll taxes.