The employer cost of group-term life insurance for individuals who separated from
employment before 1989 continues to be excluded from wages if the employee was not
reemployed by the same employer after the termination date.
REFERENCE: P.L. 100-647
If an employer continues to provide group-term life insurance coverage that exceeds
$50,000 to an individual who separated from employment after 1988, the former employee
is required to pay the employee portion of the social security tax directly to IRS.
The employer is required to report the cost of the group-term life insurance as a
separate amount on the Form W-2. This rule applies after 1990.
REFERENCE: P.L. 101-508