Which of the following statements about the federal income tax law in relation to $100,000 worth of group Term Life insurance coverage through an employer-sponsored plan?

While it is true that employees do not pay tax on premiums paid by their employer for coverage up to $50,000, this statement does not fully capture the implications of federal tax law regarding life insurance. Specifically, the tax treatment only applies to the premiums for coverage below this threshold; any excess may be taxable to employees.

This statement is misleading. Employees do not pay taxes on premiums for the first $50,000 of group term life insurance coverage provided by their employer. Instead, the IRS allows this amount to be excluded from taxable income, making it a common benefit for employees.

Employers can deduct premiums for group term life insurance regardless of whether they are the beneficiary or not. The IRS allows employers to deduct the cost of providing this benefit as a business expense, which is not contingent upon the beneficiary status.