Question

Benefits under certain wage-loss replacement plans:

a) Are always exempt from taxation
b) Include all forms of insurance coverage
c) May be subject to CPP contributions
d) Are not regulated by employment laws

Answer 1

The benefits under certain wage-loss replacement plans may be subject to CPP (Canada Pension Plan) contributions. However, the taxation of these benefits can vary depending on the specific plan and country.

Step-by-step explanation:

The benefits under certain wage-loss replacement plans may be subject to CPP (Canada Pension Plan) contributions. The Canada Pension Plan is a contributory, earnings-related social insurance program that provides benefits to retired or disabled individuals and their survivors. The CPP contributions are deducted from the employee's wage-loss replacement benefits to fund the program.

However, it's important to note that the taxation of wage-loss replacement benefits can vary depending on the specific plan and country. In some cases, these benefits may be exempt from taxation, while in others, they may be taxable.

Therefore, option c) 'May be subject to CPP contributions' is the correct answer.