Which of the following best describes the taxation of benefits paid from a contributory disability plan?

Question

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The taxation of benefits from a contributory disability plan depends on who paid the premiums. If the premiums were paid with after-tax dollars by the employee, the benefits are generally tax-free. Conversely, if the employer paid the premiums, the benefits are taxable to the employee. In a contributory plan, both the employer and employee contribute, so the taxability of benefits is proportionate to the share of premiums paid by the employee with after-tax dollars.

Which of the Following Best Describes the Taxation of Benefits