Final answer:
It is true that employer-provided group term life insurance is exempt from income taxation up to $50,000. The cost of coverage above that amount is subject to income taxes and included in the employee's gross income.
Step-by-step explanation:
The statement that employer-provided group term life insurance is exempt from income taxation up to $50,000 is true. Under the IRS guidelines, the first $50,000 of coverage that an employer provides to an employee as part of a group term life insurance plan is excluded from taxable income and considered a tax-free benefit.
However, any coverage provided in excess of $50,000 is subject to income taxes on the cost of the coverage above that threshold, which must be included in the employee's gross income.
This tax consideration is part of the employer mandate, which generally concerns various types of insurance that employers may be required to provide to their employees, such as health insurance, pension insurance, and workers' compensation insurance.