PS 58 costs


I have been told that an officer of our company will be receiving income on an annual basis from an Officer Life Insurance policy that was purchased for him.  Has anyone dealt with this?  If so, how is it disbursed to the employee?  Is it ran through payroll as a "bonus" check and show up on his W2?  Or is it ran through AP and generate a 1099R?  Any help would be greatly appreciated!!