I agree that tax should have been withheld, but I think the tax should only be on the $268 of imputed income.
I really don't care what they withheld on the stub, but I do care about how much they included in my taxable income. I contend that it should only be the $268 for the GTL, but Box 1 includes the $268 plus the $141.39 tax withheld and added to the $268 GTL premiums. My pay stub looked like this:
Excess Life Imputed Gross-up = $409.39 (the actual imputed income s/be $268 = $13.40 x 20 pay periods)
Taxes Withheld = ($141.39)
Post Tax Deduction = ($268.00)
Net Pay = $0.00
