What is GTL on a pay stub?
GTL on a pay stub stands for group-term life insurance. The IRS lets employers provide up to $50,000 of group-term life cover tax-free; the cost of cover above that is added to your taxable wages and is subject to Social Security and Medicare tax. It is not cash paid to you, which is why it appears as an earning and then comes back out.
Why GTL shows up as income
IRS Publication 15-B treats the cost of employer-provided group-term life insurance above $50,000 of coverage as a taxable fringe benefit. Your employer adds that cost to your wages so the right taxes are withheld, even though you never receive it as money.
How it looks on the stub
Many payroll providers list GTL in the earnings section so it counts toward taxable wages, then subtract the same amount elsewhere so your net pay isn’t inflated. The effect on your take-home pay is the extra tax on that value, not the value itself.
Publication 15-B says the excess is subject to Social Security and Medicare, and that federal income tax withholding on it is at the employer’s discretion.
Questions
Can I avoid GTL being added to my wages?
It depends on your employer’s plan and how much cover you have. Ask your benefits contact whether you can reduce cover to $50,000 or less.
Sources
Official sources checked September 23, 2026. This guide explains how pay documents work; it is not tax or legal advice.