Jerry has a group disability income policy. His employer pays all premiums. Which of the following is true regarding the taxation of benefits?

Jerry has a group disability income policy. His employer pays all premiums. Which of the following is true regarding the taxation of benefits?



a. They are not taxable.

b. They are taxable.

c. They are tax-deductible to Jerry's employer.

d. They are tax-deferred.



Answer: b. They are taxable.

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