Hortense works for a company that offers its employees a group insurance benefits package. As part of the plan Hortense has long-term disability coverage. The disability premiums are shared 50/50 by the employer and the group members. Up until last year Hortense had never made a claim for disability benefits, but mid-year she was injured at work and collected $12,000 in benefits. Since joining the plan Hortense had paid $2,800 in group premiums herself and her employer had paid the other $2,800, none of which had been reported to Hortense as a taxable benefit. How would the group premiums and benefits be treated for tax purposes? Question 18 options: A) The employer would deduct the $2,800 in premiums it had paid, Hortense would have to report $12,000 in benefits as taxable income. B) The employer would not deduct the $2,800 in premiums it had paid, Hortense would have to report no taxable benefit for the benefits received. C) The employer would not deduct the $2,800 in premiums it had paid, Hortense would have had to report the $12,000 in benefits as taxable income. D) The employer would deduct the $2,800 in premiums it paid, Hortense would have to report $9,200

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The detailed answer for the above question is provided below The correct answer is A The employer wo... View the full answer