Norman is covered by a group disability plan provided by his employer. Norman is required to pay half of the monthly premium for this coverage through a deduction from his weekly paycheck. The employer-paid portion of the premiums has not resulted in taxable income to Norman. In June of this year, Norman became disabled.

Which of the following statements presents a correct income tax implication of this coverage for Norman?

A)Norman includes in his taxable income the amount of employer-paid premiums for this coverage over the first five months of the year.

B)Norman includes in his taxable income the employer's cost of coverage for the entire year.

C)When disability benefits are paid to Norman, the full amount received is taxable income to him.

D)When disability benefits are paid to Norman, half of the benefits are taxable income to him.