Which code corresponds to uncollected social security tax on the value of GTL insurance exceeding $50,000?

The code that corresponds to uncollected social security tax on the value of Group Term Life (GTL) insurance exceeding $50,000 is indeed M. This classification is used specifically for situations where employers provide group term life insurance benefits, and the coverage is in excess of the $50,000 threshold set by the IRS.

When the value of GTL insurance exceeds this amount, the excess is treated as taxable income for the employee, and the uncollected social security tax related to this portion needs to be reported accurately. The "M" code indicates the need to track and report that uncollected social security tax appropriately on payroll documents.

It's critical to recognize the significance of reporting these benefits accurately, as failing to do so could lead to compliance issues with the IRS, particularly in how benefits are taxed and reported for social security purposes. Understanding the context of codes in payroll helps ensure that correct information is communicated to tax authorities, thereby avoiding penalties and ensuring that employee benefits are managed properly.