Employer-sponsored life insurance coverage provides basic financial security for employees and their families and helps to attract and retain the best employees. Because group term life insurance is inexpensive and highly valued by employees, employers frequently pick up the full cost. Many companies also allow employees to purchase additional insurance at the employer's group rate, including coverage for the employee's spouse and dependents. Premiums paid by the employer for group term life insurance are generally deductible under federal tax laws as ordinary and necessary business expenses.
Employer Pays for Improper Distribution of SPD
An employer has been ordered to pay a life insurance beneficiary the difference between the benefits under an old version of the benefit plan and the revised version because the summary plan description (SPD) for the revised plan was not properly distributed and was never received by the employee.
Employees Respond to Idea of Prepaid Funerals
For most of us, talking about death in general is hard enough. But planning our own funerals? No thanks. Yet one benefits provider thinks a funeral plan is something most employees would appreciate.
Final Regs Released on Life Insurance Contracts
Any life insurance contract transferred from an employer or a tax-qualified
plan to an employee must be taxed at its full fair market value, according to
final regulations issued by the Treasury Department and the IRS.
Benefits Take Bigger Bite
Employee benefit costs rose to 42.3 percent of payroll costs in 2002, up from
39 percent in 2001, according to a survey by the U.S. Chamber of Commerce.
