Understanding what is gtl imputed income can help employees recognize an additional amount shown on their pay statements. GTL, or Group Term Life insurance, may create imputed income when employer-provided coverage exceeds the amount allowed under federal tax rules. This imputed amount generally represents the taxable value of certain employer-provided life insurance benefits rather than additional cash paid directly to the employee. The amount can appear as taxable wages and may be subject to applicable payroll taxes. Understanding how coverage amounts, employee age, and IRS rates affect the calculation can make your paycheck easier to review and help explain unexpected changes in taxable income.