2025 Imputed Income Worksheet Now Available
If your cooperative offers group term life insurance that exceeds $50,000, you must report imputed income on employees’ W-2 forms. Co-ops that do not receive this service from their payroll provider or other vendor are welcome to use the updated imputed income tools and resources on the Employee Benefits website to perform this task. Those tools are:
- Frequently asked questions and general information. This includes an overview of what imputed income is, when it applies, and how to calculate and report it. Even though employees don’t receive cash, they must be taxed on the value of certain additional types of coverage—typically life insurance coverage. Internal Revenue Code §79 contains the rules and rates.
- A new life insurance imputed income worksheet for 2025. Use this worksheet if you plan to impute income for each pay period next year. If you report imputed income once at the end of the year, use the 2024 worksheet.
- A tutorial with step-by-step instructions for how to use the worksheets.
Although these tools can help you with your calculations, 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.