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Under which of the following employer provided plans are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?

A) Group Health Insurance
B) Group Life Insurance
C) Group Disability Income Insurance
D) Group Accidental Death and Dismemberment Insurance

1 Answer

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Final answer:

The benefits taxable to an employee in proportion to the employer-paid premiums are typically found in Group Life Insurance plans, where premiums for coverage over $50,000 are taxable income for the employee.

Step-by-step explanation:

The benefits that are taxable to an employee in proportion to the amount of premium paid by the employer are typically found in Group Life Insurance plans. Under a Group Life Insurance policy, if the employer pays the premiums on behalf of the employee, the premiums for coverage over $50,000 are considered taxable income for the employee. Therefore, the cost of the insurance is essentially included in the employee's gross income and taxed accordingly.

On the contrary, other employer-provided plans such as Group Health Insurance, Group Disability Income Insurance, and Group Accidental Death and Dismemberment Insurance usually offer benefits that are generally tax-free to the employee, assuming the premiums are paid by the employer.

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