Your client, age 24, works at a company that provides a 60% disability policy on her $40,000 salary. The total premium i

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answerhappygod
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Your client, age 24, works at a company that provides a 60% disability policy on her $40,000 salary. The total premium i

Post by answerhappygod »

Your client, age 24, works at a company that provides a 60%
disability policy on her $40,000 salary. The total premium is
$2,000 of which the client pays $400 and the employer pays the
remainder. The elimination period is 90 days. Which statement is
correct regarding the premium for this disability policy?
Group of answer choices
a. No deduction is allowed for the $400 premium that the client
pays toward the disability policy.
b. The client will report the $1,600 as income for the employee
employer‐paid portion of the disability premium.
c. The employer cannot deduct $1,600 for the disability premium
paid on the client’s behalf.
d. The employer can deduct the $2,000 disability premium payment
paid on client’s behalf.
show work or explain please
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