Yes. Employer-paid group term life insurance premiums are not subject to Pennsylvania personal income tax. That is what you should explain on your statement.
PA says an actual state copy or a legible photocopy of each state copy of Form W-2 and/or a written explanation of the amount of compensation reported should be submitted with the PA-40, Personal Income Tax Return, if the Medicare wages in Box 5 on Form W-2 are greater than PA wages in Box 16. In this case, complete and include the PA-40 W-2 Reconciliation Worksheet with the PA-40, Personal Income Tax Return.
Refer to Can you give me some examples of items that are not subject to the personal income tax?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
