If an employer pays for an employees DI Policy, I do know that the benefit should be taxable when it comes time for a claim.
But, I am a little confused. What if an employer doesn't get a tax benefit by paying for it, is the employees benefit still taxed?
I have a client who wants to pay for his two employees DI policies. Is there a way around the benefit being taxed if the employer is paying the premium. Or any ideas on how to get around this without having to have the employees pay out of their own account?
I usually don't run across this, but just did. I'm also doing term life, and an accident plan with this same crew. So same questions for those?
The client's idea was to give those employees a small hourly increase in wage, but is there another way without having it come down to the employees paying from own account?
Hope I worded this so it's not confusing? lol
But, I am a little confused. What if an employer doesn't get a tax benefit by paying for it, is the employees benefit still taxed?
I have a client who wants to pay for his two employees DI policies. Is there a way around the benefit being taxed if the employer is paying the premium. Or any ideas on how to get around this without having to have the employees pay out of their own account?
I usually don't run across this, but just did. I'm also doing term life, and an accident plan with this same crew. So same questions for those?
The client's idea was to give those employees a small hourly increase in wage, but is there another way without having it come down to the employees paying from own account?
Hope I worded this so it's not confusing? lol