How Do I…
Handle the Tax Treatment of SDB Premium Contributions?
There are some instances when the Supplemental Death Benefit becomes taxable — when it becomes a “fringe benefit.”
The Supplemental Death Benefit (SDB) in TMRS is considered to be similar to proceeds from a group-term life insurance program. As such, coverage provided to an employee in excess of $50,000 from group-term life insurance may be considered taxable compensation to the employee.
City payroll officers should refer to this useful publication, released by the IRS in 2014, and refer to page 15 to find the reference to handling Group-term Life Insurance.
If you fax a form, do not mail a separate copy. We only need one copy of each form, either faxed or mailed.
How Do I? for Cities
- Enroll a new member?
- Process the city payroll?
- Prepare W-2 forms?
- Assist members with a beneficiary change?
- Help a member get credit for previous public service?
- Help a member get credit for military service?
- Help a member refund?
- Help a member apply for service retirement?
- Help a member apply for occupational disability retirement?
- Report a death?
- Help a member who is divorcing?
- Handle the Tax Treatment of SDB Premium Contributions?