Question

What type of premiums payment can employers deduct as an ordinary business expense?

A. Only group life insurance premiums

B. Only health insurance premiums for employees

C. Only disability insurance premiums for employees

D. Premiums for group life, health, and disability insurance for employees

Answer 1

The correct answer is D. Premiums for group life, health, and disability insurance for employees. Employers can deduct premiums for group life, health, and disability insurance as an ordinary business expense.

Step-by-step explanation:

The correct answer is D. Premiums for group life, health, and disability insurance for employees. Employers can deduct premiums for group life, health, and disability insurance as an ordinary business expense. These premiums are considered a business expense because they are directly related to the operation of the business and providing benefits to employees. Deducting these premiums helps employers save on taxes and can also encourage them to offer comprehensive insurance coverage to their employees.