What is the deduction code type GTL used for?
The deduction code GTL stands for Group Term Life. If a firm pays for life insurance for an individual in the amount of $50,000 or more, the individual must report the dollar amount (as computed in the tables provided by the Internal Revenue Service) as wages on their W-2, in boxes 1, 3, 5, & 13. In essence, GTL is not a deduction, but actually added to wages. GTL’s are considered an annuity, which means federal withholding is not owed on the dollar amount as computed by the IRS. Social security and Medicare taxes are due.
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