Question $25$

Which of the following statements is true regarding disability insurance premiums?

Employees who pay for group disability with pre$-$tax dollars do not pay tax on benefits received.

Employees paying premiums with pre$-$tax dollars must pay tax on benefits received.

Employees who pay for their group disability with after$-$tax dollars must pay tax on benefits received.

Regardless of how premiums are paid $($pre or post tax$)$ employees must pay tax on benefits received.