Question: Sandra has just recently started working for GreenFields Inc., a small landscaping firm that operates solely in the city of Langley, British Columbia. As an

Sandra has just recently started working for GreenFields Inc., a small landscaping firm that operates solely in the city of Langley, British Columbia. As an employee of GreenFields, Sandra has joined the company group extended health insurance plan. The plan includes vision, dental, and prescription drug coverage. Which of the following statements CORRECTLY describes the tax implications of Sandra's group extended health insurance premiums and benefits?

a. Premiums paid by Greenfields would be considered a taxable benefit to Sandra.

b. Premiums paid by Greenfields are a tax-deductible expense for Greenfields.

c. Premiums paid by Sandra are tax-deductible for Sandra.

d. Prescription drug benefits received by Sandra are taxable.

Step by Step Solution

3.55 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Correct answer is a Premium paid by Greenfield would be considered a taxable benefit ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!