Group Term Life (GTL)

What is Group Term Life Insurance?

Group Term Life (GTL) Insurance is an employer-paid benefit that offers life insurance coverage to employees at no cost to the employee. This valuable benefit offers financial support to your beneficiaries should the unexpected happen.

Eligibility

All full-time regular employees are automatically eligible in Group Life Insurance. All eligible employees will be enrolled in Group Life Insurance unless the benefit is waived.

Tax Implication

While the life insurance benefit is 100% covered by Orchestra, employees are responsible for paying the taxes that come with this benefit. This is the same as how employees are individually responsible for their own federal taxes, social security etc. beyond what employers pay.

If you elected into the benefit, you'll notice a small amount (anywhere from 30 cents to $35.88) added to your gross wages for your "Group Term Life benefit". You are then responsible for the FICA taxes (Medicare and Social Security) for a portion of this benefit. So, in these examples, you are not taxed at 30 cents to $35.88 per paycheck—you are taxed a small percentage on a value of 30 cents to $35.88.

The tax impact is therefore very minimal and in some cases non-existent. 

Adding/Updating Beneficiaries

You can add/update your beneficiaries at any time via Paylocity.