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Assuming an employee pays $200 per month in disability premiums and receives a corresponding $5,000 monthly benefit, all while being in the 22% tax bracket,

Assuming an employee pays $200 per month in disability premiums and receives a corresponding $5,000 monthly benefit, all while being in the 22% tax bracket, what is the most favorable tax outcome? A) The employer pays the full cost. B) The employer and employee share the cost of insurance. C) The employee pays the full cost with after-tax dollars. D) The employee pays the full cost with pretax dollars.

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