Pub 15-B (2026) Table 2-2

Group-term life imputed income calculator

By Michael, independent developer and the person who wrote the StateWage paycheck engine. Not a CPA, an attorney, or a payroll provider.

Enter the group-term life coverage that the employer provides, the employee's age and what the employee paid toward it. The tool estimates the imputed income from Table 2-2 of IRS Publication 15-B (2026) and the employee Social Security and Medicare tax on it. For regular paycheck math, use the paycheck calculator.

Group-term life coverage

Age on last day of tax year

Employee paid for the year

Months of coverage (0 to 12)

Other Social Security wages from this employer this year

Imputed income for the year (W-2 boxes 1, 3 and 5, box 12 code C)

$170.00

Yearly cost $270.00 minus $100.00 paid · $14.17 per month of coverage

Employee Social Security $10.54 · Medicare $2.47

First 50,000 dollars excluded · Table 2-2 cost · Federal only · Estimates

Breakdown for $200,000.00 of coverage, age 45

Coverage over 50,000 dollars, to the nearest 100 dollars$150,000.00

Table 2-2 cost per 1,000 dollars for 1 month$0.15

Monthly cost (rounded to the cent)$22.50

Yearly cost (exact monthly cost times months)$270.00

Less the amount the employee paid$100.00

Imputed income for the year$170.00

Imputed income per month of coverage$14.17

Part subject to Social Security tax$170.00

Employee Social Security tax (6.2%)$10.54

Employee Medicare tax (1.45%)$2.47

Self-check with the Publication 15-B example (age 45, 200,000 dollars of coverage, 100 dollars paid, 12 months): yearly cost $270.00, amount in wages $170.00.

How Publication 15-B figures the amount

An employer can generally exclude the cost of up to 50,000 dollars of group-term life insurance coverage from an employee's wages. The cost of coverage beyond 50,000 dollars, reduced by the amount the employee paid toward the insurance, is included in wages.

The monthly cost is the number of thousands of dollars of coverage over 50,000 dollars, figured to the nearest 100 dollars, times the Table 2-2 cost for the employee's age. Use the employee's age on the last day of the employee's tax year. Multiply the monthly cost by the number of months of coverage. The tool uses one coverage amount for all months. If the coverage amount changes during the year, Publication 15-B figures the cost separately for the months at each cost. If less than a full month of coverage is involved, the cost must be prorated. Publication 15-B does not give a method to prorate. In this tool, enter a part month as a fraction, for example 0.5 for half a month. The fraction is your estimate, not an IRS figure.

The amount is reported in boxes 1, 3 and 5 of Form W-2 and in box 12 with code C. It is subject to Social Security and Medicare taxes. The employer may, at its option, withhold federal income tax.

Table 2-2. Cost per 1,000 dollars of protection for 1 month (Publication 15-B, 2026)
Under 25	$0.05
25 through 29	$0.06
30 through 34	$0.08
35 through 39	$0.09
40 through 44	$0.10
45 through 49	$0.15
50 through 54	$0.23
55 through 59	$0.43
60 through 64	$0.66
65 through 69	$1.27
70 and older	$2.06

The Publication 15-B example

Tom's employer provides 200,000 dollars of group-term life coverage. Tom is 45, is not a key employee, and pays 100 dollars per year toward the cost. The coverage is reduced by 50,000 dollars. The yearly cost of 150,000 dollars of coverage is 270 dollars (0.15 times 150 times 12). After the 100 dollars that Tom pays, the employer includes 170 dollars in boxes 1, 3 and 5 of Tom's Form W-2 and enters 170 dollars in box 12 with code C.

The calculator opens with these inputs and shows the same 270 dollars and 170 dollars.

Social Security and Medicare on the imputed amount

Publication 15 (2026) gives a Social Security tax rate of 6.2% each for the employer and the employee, on wages up to the 184,500 dollar wage base. The Medicare tax rate is 1.45% each for the employee and the employer, with no wage base limit.

Enter the other Social Security wages that this employer pays the employee in the year. When those wages reach the wage base, the tool stops the Social Security tax on the imputed amount. Medicare tax applies to all of it. The figures are the employee share. This estimate does not include the 0.9% Additional Medicare Tax.

The tool assumes a current employee who is not a key employee, as in the Publication 15-B example. It does not estimate state taxes.

Common questions

Why is imputed income on my W-2 when I received no cash?

Publication 15-B says the employer must include in wages the cost of group-term life insurance beyond 50,000 dollars of coverage, reduced by the amount the employee paid toward the insurance. The amount goes in boxes 1, 3 and 5 of Form W-2 and in box 12 with code C.

Is federal income tax withheld on it?

The amount is included in wages and is subject to Social Security and Medicare taxes. Publication 15-B says the employer may, at its option, withhold federal income tax. This page does not estimate income tax.

Does coverage on my spouse or child count?

This page does not calculate it. Publication 15-B says employer-paid group-term life coverage for a spouse or dependents may be excludable as a de minimis fringe benefit if the face amount is not more than 2,000 dollars.

Sources

IRS Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits, section Group-Term Life Insurance Coverage, Table 2-2 and its example.

IRS Publication 15 (2026), Employer's Tax Guide, Social Security and Medicare taxes for 2026.

IRS Topic no. 751, Social Security and Medicare withholding rates.

Sources read on October 11, 2026. Results are estimates, not tax advice.