2022 Imputed Income Worksheet Now Available

If your cooperative offers group term life insurance (either through the NRECA Group Benefits Program or another group insurance plan), you must report imputed income on employees’ W-2 forms.

Life insurance imputed income worksheets for both 2021 and 2022 are now available on the Employee Benefits website. If you report imputed income once at the end of the year, use the 2021 worksheet. Use the new 2022 worksheet if you plan to impute income for each pay period throughout 2022.

Employers must calculate and report imputed income for the taxable value of group term life insurance above an employee’s first $50,000 of coverage (including supplemental, spouse, and child life coverage). Even though employees don’t receive cash, they’re taxed on the value of this additional coverage. Internal Revenue Code §79 contains the rules and rates.

Frequently asked questions are available on the imputed income page of the BA Guide. A new Imputed Income Worksheet Tutorial has been posted to the Webinars & Videos section of the Employee Benefits website. The tutorial gives step by step instructions for how to use the worksheets in your calculations, whether you report throughout the year or all at once. 

These tools are provided to help you with your calculations, but they are not intended as tax or legal advice. Consult your co-op’s tax advisor or legal counsel to confirm your co-op’s imputed income reporting requirements. 

If you have any questions about imputed income, contact the group compliance team at 866.673.2299, option 7, or group.compliance@nreca.coop.