Employees with employer provided group term life insurance are required to pay taxes on the value of benefits in excess of $50,000. Federal law requires employers to impute income on the value of these benefits to the employee; some employers impute income on group term life insurance coverage during the year, while others wait until the end of the year. We generally recommend to impute the value during the year; however, if you do so at year-end - now is the time to begin compiling your information for reporting on employee W-2s, withholding and payment before year-end.
The value of group term life insurance must be determined via IRS Table I rates (not what an employer actually pays for coverage); these rates do not index for inflation and will not change unless the IRS revises them.