What Is GTL on Paystub? Group Term Life Explained

Seeing GTL on your pay stub and wondering what it means? You’re not alone. GTL stands for Group Term Life insurance. It's an employer-provided benefit that may show up as part of your compensation or deductions.

Understanding "What is GTL on paystub entries?" can help you make sense of your earnings and deductions. If you need a reliable paystub generator for your own records, creating one takes just minutes.

This guide explores "What is GTL on paystub?" and when it becomes taxable. It also explains how to calculate the amounts you'll see on your paystub and W-2.

Key Takeaways

• GTL stands for Group Term Life Insurance, an employer-provided life insurance benefit
• Coverage above $50,000 becomes taxable income under IRS rules
• The IRS uniform premium table uses age brackets to set GTL costs
• GTL imputed income appears in Box 12 Code C on your Form W-2
• Costs rise at ages 45, 55, and 65

What Is GTL on Paystub?

GTL on your paystub stands for Group Term Life Insurance. It is an employer-provided life insurance benefit. When your policy exceeds $50,000, you'll see the excess amount as taxable income. This is in accordance with IRC Section 79 and IRS Publication 15-B.

Your GTL paystub entry shows taxable life insurance benefits from your employer. This amount is not deducted from your paycheck. Instead, it is imputed income, meaning it is added to your taxable wages. The GTL acronym may appear as GTLI, GROUP LIF, GL50K+, or LIFE IMP, depending on your employer's software. For common abbreviations, see our guide on payroll deduction codes.

What does GTL stand for in payroll? The answer is always Group Term Life. The GTL on paystub amount reflects what the IRS considers a taxable fringe benefit.

How Does Group Term Life Insurance Work?

Group Term Life Insurance provides a death benefit to your beneficiaries if you pass away while employed. Understanding "What is GTL on paystub?" can help you see this benefit clearly. Your employer typically provides coverage equal to 1-2 times your annual salary at no direct cost to you.

Unlike individual life insurance, GTL payroll benefits don't require a medical exam. This guaranteed issue coverage lets all employees qualify regardless of health conditions. Coverage ends when you leave your job. Some employers let you convert your group term policy to whole life insurance when you leave.

It is important to update your beneficiaries after major life events, such as marriage, divorce, or becoming a parent. If your employer offers dependent or spousal coverage, review those options as well. You can usually make updates during open enrollment or after a qualifying life event.

The pay stub templates tool allows users to create professional pay stubs quickly when their employer does not provide required pay records.

Read more: ER Health on a Pay Stub: What It Means

What Is GTL on Paystub When It Becomes Taxable?

The GTL becomes taxable when coverage exceeds $50,000. The cost above this threshold is imputed income and is subject to FICA taxes (Social Security and Medicare). Coverage for spouse and dependents over $2,000 is also taxable. These rules come from IRC Section 79. Note that federal income tax doesn't apply to this benefit. It's a non-cash benefit subject only to FICA taxes. The $50,000 threshold is a de minimis benefit level set by the IRS.

How It Works

If your employer's life insurance policy is worth $100,000, the first $50,000 is tax-free. The remaining $50,000 is treated as GTL imputed income based on your age and the IRS premium table.

The $50,000 threshold remains unchanged for 2026. So, what does GTL mean on a pay stub? It's the taxable value of your life insurance benefit above this limit. Understanding FIT taxable wages can help you see how this affects your overall tax picture.

IRS Premium Table for GTL

The IRS uniform premium table sets monthly costs per $1,000 of coverage above $50,000. Your age bracket determines the rate:

Notice the high cost jumps at ages 45, 55, and 65. A 44-year-old pays $0.10 per $1,000 monthly. At age 45, this jumps to $0.15, a 50% increase.

Systems like ADP use this same IRS table for GTL paycheck meaning and imputed income calculations.

How To Calculate GTL Imputed Income

Use this formula to calculate GTL imputed income:

[(coverage amount - $50,000) / 1,000] x IRS Monthly Rate x 12 months.

Example 1: A 45-year-old with $150,000 coverage has $100,000 excess.

At $0.15 per $1,000 monthly:

$0.15 x 100 x 12 = $180 annual imputed income.

Example 2: A 55-year-old with $100,000 coverage has $50,000 excess.

At $0.43 per $1,000 monthly:

$50,000 / 1,000 x $0.43 x 12 = $258 annual imputed income.

To verify "What is GTL on paystub?" calculations, follow these steps:

1. Find your coverage amount from HR
2. Subtract $50,000
3. Divide by 1,000
4. Multiply by your age-based monthly rate
5. Check your paystub against this calculation

You may also wonder, "What is GTL on my paystub if the amount seems wrong? In this case, you need to check your coverage amount by reaching out to HR. You can also learn how to calculate W-2 wages from pay stub to verify your year-end totals.

Read more: Use a Free Paycheck Stub Template: The 7 Best Templates

How GTL Is Reported on Your W-2

Your GTL imputed income appears in several places on Form W-2.

First, it is included in Boxes 1, 3, and 5 as part of your total taxable wages. You will also see the specific GTL amount listed separately in Box 12 under Code C.

So, what does GTL stand for on paycheck records when it comes to taxes? On paycheck records, GTL stands for Group Term Life insurance, and the amount reported reflects the taxable portion of that benefit. If you want a deeper breakdown of each section, our guide on how to read a W-2 breaks down each box in detail.

Before filing your taxes, review your December paystub to confirm your W-2 information is accurate. The year-end GTL on paystubs total should match the amount reported in Box 12 Code C.

Benefits and Limitations of GTL

GTL offers several advantages for employees. The benefits packages of large employers, including Walmart, Amazon, Target, and Home Depot, provide group term life insurance coverage to their employees at no employee cost.

Benefits:

• Free or low-cost life insurance coverage
• No medical exam required
• Easy enrollment through your employer

Limitations:

• Coverage ends when you leave your job
• Limited protection for family members
• Costs rise with age

Review your GTL coverage details during open enrollment to ensure it meets your needs.

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Final Thoughts

What is GTL on paystub entries in simple terms? It's the taxable value of group term life insurance coverage above $50,000. The imputed income amount depends on your age and is based on the IRS uniform premium table. Ensure you review your coverage during open enrollment and check your year-end paystub to confirm your W-2 information.

You can use a trustworthy paystub creator to generate professional pay stubs. This takes only a few minutes to complete.