Calculate imputed income on group life insurance?

Don't be intimidated! It looks complex at first, but it really isn't. Basically, any amount above the 50K or so threshold that is provided has the premium value that is accepted (see the IRS.gov instructions - based like any life insurance on sex/age and such) calculated, and any amount the employee paid is allowed as a credit. If there is less paid then the benefit is worth, then that is imputed income.