An employer pays $90 of a $100 group disability premium, and the employee pays the other $10. The disability benefit under the plan is $1,000/month. If the employee becomes disabled and receives the full benefit, how much, if any, of the monthly benefit would be taxable income?

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Jordan Valencia

13 April, 00:22

An employer pays $90 of a $100 group disability premium, and the employee pays the other $10. The disability benefit under the plan is $1,000/month. If the employee becomes disabled and receives the full benefit, how much, if any, of the monthly benefit would be taxable income?

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Answers (2)

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Khalil Turner · Answer 1

Taxable income is defined as the income used to calculate how much tax an individual or a company owes to the government in a given tax year. It is described as adjusted gross income (that is, total income, known as "gross income," minus any deductions or exemptions allowed in that tax year).

Since the employer pays $90 per $100 of the disability premium.

Disability benefits = $1000 per month

Taxable income = $90/$100 * $1000

= $900

Sienna Strong · Answer 2

the monthly benefit taxable income would be $900

Explanation:

For a Plan of $1,000/month if the employer pays $90 and the employee pays the other $10 of a $100 group disability premium.

after paying the total amount of %100 according to the plan if the employee gets disabled then he will get 90% of the total amount which is taxable income.