GTL stands for Group Term Life insurance, which is a common benefit provided by employers. If you see GTL or a similar reference to group term life on your paycheck, that means its included as part of your employee benefits package. Your employer may pay the premiums for the insurance, but you could owe tax on it depending on the amount of coverage youre provided. The amount shown on your paycheck or pay stub for group term life insurance represents the taxable benefit. When you receive a W-2 form from your employer at the end of the year, it will report the total cost of any group insurance you received that was in excess of $50,000 and thus taxable. That amount will appear in box 12c of your W-2 and also be included in your income for boxes 1, 3, and 5.

The GTL amount on your paycheck is not the amount deducted from your paycheck, but instead is the taxable benefit. The taxable portion is computed using your gross wages, the age you are on December 31 of the taxable calendar year, and a cost table per $1000 of coverage provided by the IRS. The monthly taxable benefit calculation is the amount over $50,000 of coverage multiplied by the cost table percentage minus the age-based reduction.

In summary, GTL on a paycheck refers to Group Term Life insurance, which is a benefit provided by employers. The amount shown on the paycheck represents the taxable benefit, and the taxable portion is computed using the employees gross wages, age, and a cost table provided by the IRS.