George's Bowling Alley provides a group disability income policy to its employees. Employees pay a portion of the premiums. Which of the following is true?

George's Bowling Alley provides a group disability income policy to its employees. Employees pay a portion of the premiums. Which of the following is true?




a. Premiums are completely tax-deductible for George and all employees.

b. Benefits are never taxable.

c. The portion of premiums paid by George is not tax-deductible.

d. Benefits are taxable to employees based on the portion of premiums paid by George.



Answer: d. Benefits are taxable to employees based on the portion of premiums paid by George.

Comments

Popular posts from this blog

In insurance,