Generally, if an employer pays for an employee's health, or medical insurance under a "cafeteria" plan, (which is a plan that gives the employee a certain amount of money that he or she can "spend" on benefits), and the amount of the premiums is not included in the employee's income, then any benefits they receive from the insurance plan(s) are: Question 52Select one: a. Not Taxable b. Included in the employee's income c. Taxable to 85% of the benefits received d. May be included in their income depending on their modified AGI and filing status