An employer is paying $250 per employee for transportation benefits. What is the effect to the employee and the employer at both the federal and state level? Select one: a. The employees will receive nontaxable fringe benefits from this, and the employer will get a $250 deduction as a monthly business expense per employee at both the federal and the state levels. b. The employees will have $250 monthly taxable income, but the employer will have $250 in deduction per month, per employee as a business expense on both the federal and state return. c. The employees will have nontaxable fringe benefits, and the employer will have $250 monthly per-employee business costs at the state level. On the federal return, the cost of the transportation fringe benefit will be nontaxable. d. The employees will only have a nontaxable fringe benefit if they substantiate the costs so the employer can deduct them on their own federal and state returns