FAQs - Employer Withholding

Under federal law, premiums on group-term life insurance of $50,000 or less are excluded from an employee’s taxable wages. Does Ohio also allow these amounts to be excluded?

Amounts excluded from federal wages, tips and other compensation are also excluded for Ohio income tax purposes. However, premiums on life insurance amounts in excess of $50,000 that are included in federal wages should also be included in state wages as reported in box 16 of an employee’s W-2 form. Please note that Ohio income tax withholding is not required on the cost of group-term life insurance that is included in the employee’s income.