Your employer is considering adding a group term life insurance plan to the employee benefit package. The premium cost would be fully paid by the organization. Explain how this will impact:

• the employees' net pay
• the employer's payroll costs

• What type of benefit is group term life insurance? Cash or noncash, taxable or non-taxable?
• Once youve determined the type of benefit, figure out how the stat deductions would be affected
• How do the increases or decreases in net income affect employees net pay and employers costs?