Final Answer:
Group term life insurance over $50,000 is reported in Box 12 on Form W-2 with Code C. Option B is answer.
Step-by-step explanation:
When an employer provides group term life insurance coverage exceeding $50,000 for an employee, the cost of that coverage is considered a taxable fringe benefit and is reported in Box 12 of the employee's Form W-2. The corresponding code for reporting this benefit is Code C. This reporting ensures that the employee is aware of the taxable value of the excess coverage provided by the employer. It's important for employees to understand the tax implications of such benefits, as they contribute to the overall compensation received and may impact the employee's taxable income.
Option B is not the answer; the correct answer is Code C.