What code is included for group term life insurance over $50,000 reported in Box 12 on Form W-2?

The correct code for group term life insurance coverage in excess of $50,000 reported in Box 12 on Form W-2 is Code C. This code identifies the value of the coverage that exceeds the $50,000 threshold, which is considered taxable income to the employee.

The IRS requires employers to report the cost of this excess coverage because it is subject to income tax and may also influence the employee's tax situation. The premium amount above the $50,000 will be included in the employee's wages and is important for determining any tax obligations.

Other codes listed, such as A, L, and P, pertain to different types of benefits or compensation reporting but do not explicitly relate to the reporting requirements for group term life insurance in excess of $50,000. Understanding the correct use of these codes is crucial for accurate tax reporting and compliance for both employers and employees.