Ralph, 55, has worked for Johnson Plastics, Inc. for 60 days and has now qualified to enroll in the company’s group benefit plan. One of the employee benefits provided is group long-term care insurance. Johnson Plastics, Inc.

pays 100 percent of the premium for this insurance. How are the company’s premium payments treated for federal income tax purposes?

A. Premiums are tax-deductible for the employer;

taxable to the employee.

B. Premiums are tax-deductible for the employer; taxexempt for the employee.

C. Premiums not tax-deductible for employer; taxable to employee.

D Premiums not tax-deductible for employer; taxexempt for the employee.