This quiz assesses knowledge on federal tax considerations for health insurance, focusing on aspects like the deductibility of premiums and the taxability of benefits. It is designed for professionals navigating the intersection of health insurance and tax obligations.
Fully contributory
Partially deductible to the employer
Deductible to the employer as a business expense
Not deductible to the employer
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Benefits paid to most qualified disabled employers
Benefits paid to disabled employees, which are attributed to the employer’s contribution
Benefits paid to unqualified employees
Benefits paid to unqualified employers
Contract provisions
Sub-Contract provisions
If the premiums were or were not taxed
State statutes
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$10,000
$2,500
$7,500
None
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A Disability Buy-Sell plan protects the insured in case of disability. It allows the policyowner to buy out the partner’s interest in the business, but when benefits are paid out, taxes must be paid
The agent suggests a Key Person Disability plan so that Lisa can buy out Lena’s portion because a Buy-Sell policy won’t give Lisa the cash to purchase Lena’s portion of the business
A Disability Buy-Sell plan protects the insured in case of disability. It allows the policyowner to buy out the partner’s interest in the business, and the benefits are tax free.
The agent informs the ladies that the premiums aren’t deductible, and benefits are not tax free. He advises them that the plan is not a sensible purchase for them at the time
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No tax
Premium tax
All taxes
Income tax
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Long Term Care
Group Disability
Social Security
Indemnity Plan
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None
7.5% Federal Income Tax
FICA
State Withholding
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Replace a disabled employer’s salary
Are not taxable
Are taxable
Replace an employee’s pension
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The benefits are taxable
The premiums must be paid with after-tax dollars
The benefits are not taxable
The premiums can be deducted from business expenses
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The benefits are attributable to the employer
Tax withholding is required for the first 6 months
They are exempt from the Social Security tax after 12 months
They are subject to FICA withholding for Social Security
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Are made by the business and are tax-deductible
Are made by the business and are not tax-deductible
Are made by the employee and are not tax-deductible
Are made by the employee and are tax-free
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If the employer paid the premiums, income benefits are taxable to the insured as ordinary income
If the insured paid the premiums, any disability income benefits are tax free
If the benefits are for a permanent loss, they are not subject to income taxation no matter who paid the premium
If paid by the individual, the premiums are tax deductible
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“If paid by the individual, the premiums are tax deductible”
“All Benefits are Tax Free”
“Premiums not Deductible”
“If contributory the part paid by the employer is taxable as income, the employees contribution is nontaxable”
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Employee benefits are tax deductible the year in which they were received.
Employee paid premiums may be deducted if certain conditions are met.
Benefits received by the employee are free from federal income tax.
Premiums paid by the employer are deductible as a business expense.
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Quiz Review Timeline (Updated): Mar 20, 2023 +
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