The taxable and tax amounts for employer paid GTL premiums for coverage over $50,000 are reported on the W-2 as:

The correct answer identifies how employer-paid group term life (GTL) insurance premiums for coverage exceeding $50,000 are treated for tax purposes on the W-2 form. Specifically, the premiums that an employer pays for coverage above this threshold must be reported as taxable income for the employee.

When coverage exceeds $50,000, the cost of that excess coverage is generally considered imputed income and is included in the employee's taxable wages. This means that the amounts are added to Box 1 of the W-2, which reflects the total wages subject to federal income tax. Additionally, since these amounts are still subject to Social Security and Medicare taxes, they also appear in Boxes 3 and 5.

The inclusion of these amounts in Box 12 with code "C" signifies that they are subject to social security and Medicare taxes but were not subject to federal income tax withholding. However, in this scenario, the coverage over $50,000 is indeed included in the federal taxable income, which is why the inclusion in Boxes 1, 3, and 5 is accurate.

Overall, the treatment prescribed by the correct choice aligns with IRS guidelines regarding the taxation of employer-paid GTL premiums, ensuring compliance with income reporting for employees.