Question

For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

a)50%
b)60%
c)90%
d)100%

Answer 1

Employers can deduct 100% of the group medical and dental insurance premiums paid on behalf of their employees as a business expense for tax purposes. Option B.

Step-by-step explanation:

For group medical and dental expense insurance, the percentage of premium paid by the employer that is deductible as a business expense is 100%. This means that employers can deduct the full cost of health insurance premiums they pay on behalf of their employees as a business expense when filing taxes.

This deduction is available to businesses because it is considered a necessary expense for maintaining the health and well-being of employees, which in turn can contribute to overall business productivity. Option B.