Answered

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If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

A. The annual premium divided by the number of employees
B. The entire premium paid in a year
C. Half the premium paid in a year
D. Nothing

Sagot :

GinnyAnsweridn
In this scenario, the corporation is required to report the entire premium paid in a year as additional taxable income for each employee.

Here is the step-by-step solution:

1. Understanding the Requirement:
- A corporation that provides group life insurance for its employees must determine how much of the premium they need to report as additional taxable income for each employee.

2. Provided Information and Options:
- The choices include:
- The annual premium divided by the number of employees.
- The entire premium paid in a year.
- Half the premium paid in a year.
- Nothing.

3. Determining the Correct Answer:
- According to the rule specified in the question, the entire premium paid by the corporation for group life insurance is considered additional taxable income for the employees.

Therefore, the corporation is required to report the entire premium paid in a year as additional taxable income for each employee.

Thus, the correct answer is: The entire premium paid in a year.
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