Which of the following statements is correct regarding the tax situation of an employee who has non-participating group AD&D coverage through his/her employer?

a. The employee must pay income tax on any benefits that exceed the actual amount of medical expenses.

b. The employee may deduct the cost of the premium from income taxes.

c. The employer must report all benefits received by the employee to the IRS.

d. 75% of employees must participate in the plan.

Answer: A

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