Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?

Question

Quizplus · Accepted Answer

If an employer pays disability premiums, and the employee chooses the premium as taxable compensation, it is considered employee-purchased and the benefits paid (if any) are excluded from the employee's gross income. Employer-paid whole life insurance premiums are included in gross income. Only premiums on up to $50,000 of employer-paid group term insurance are excluded from gross income.

Ben's Employer Offers Employees the Following Benefits