2023 Life & AD&D
This coverage helps ensure your loved ones have sufficient income in case of a death or serious accident during your length of employment at Paycor.
2023 Life Insurance Coverage Types and Features
Enrollment Opportunities
New Hire Period:
As a new hire, you will receive an email on the fourth day after your start date with instructions on how to elect or waive benefit coverage. You will have 30 days to complete. If elected, Medical, Dental, Vision, Life, AD&D, STD, and LTD benefits are effective the day following 15 days of employment.
Open Enrollment:
Active associates may elect to add, drop, or change coverage during the annual Open Enrollment period, typically held the first week of November. Enrollment instructions will be sent through an internal communication approximately 2 weeks prior. You will have 2 weeks to complete. Election changes are effective January 1st.
Qualified Life Events:
You must experience a Life Event such as marriage, divorce, birth of a child, or spouse losing employment, in order to change your benefit elections outside of the New Hire or Open Enrollment election periods. You have 30 days from the date of the event to make election changes. Elections changes are effective as of the date of the event. Please see more information regarding Life Events here.
Imputed Income Taxation
The IRS requires special taxation of the value, known as Imputed Income, of such benefits exceeding $50,000 annually.
What does this mean?
To be compliant with the requirement, Associates will see a “GTL” line item on their paystub indicating the Imputed Income, or amount to be taxed each pay period. The average Imputed Income (taxable amount) is $3.50 per pay resulting in minimal taxes paid per Associate in most cases.
What is Imputed Income?
Imputed Income is the value of a service or benefit provided by employers to employees, which must be treated as income. The first $50,000 of coverage volume for Basic Group Term Life plans paid by an employer is a tax-free benefit for Associates. If an Associate's coverage volume is greater than $50,000, the IRS calculates Imputed Income for the value of the premium paid by the employer for the excess coverage, and this amount is added to the Associate’s gross income.
How is the tax rate determined?
Imputed Income amounts for Basic Life plans are calculated using the volume of coverage* and an age-banded rate, which is determined by the IRS using your age on the last day of the tax year.
*For commissioned Associates, the coverage volume, or Life Insurance benefit amount, is determined by using an average of the preceding 12 months of earnings and will be updated on a quarterly basis.
Additional Resources Available to You
Basic Life Insurance_Accidental Death & Dismemberment (AD&D)
Supplemental Life Insurance_Supplemental Accidental Death & Dismemberment (AD&D)