Health and Life Insurance

Category - Tax Issues

In most cases, employers can deduct __________ of the health insurance premiums that they pay for qualifying group health plans.
  1. None
  2. 25%
  3. 50%
  4. 100%
Explanation
Answer: D - In most cases, employers can deduct 100%of the health insurance premiums that they pay for qualifying group health plans. In addition, when an employer offers group health insurance coverage, it is possible for an employee's share of the premium to be paid with pre-tax dollars. This will help to reduce the employee's annual income tax amount due, as it will be calculated on a lesser amount of annual income received.
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