The Daly Distributing Company, an incorporated business, took out a disability insurance policy on the life of its most senior employee, Bo Weekly. The company pays the premiums for the policy but Bo is named as the beneficiary. What are the tax implications for the company and for Bo each year that the premiums are paid? 

A) The employer can't deduct the premiums but the employee also does not have to report them as a taxable benefit. 

B) The employer can deduct the premiums but the employee does not have to report them as a taxable benefit. 

C) The employer can't deduct the premiums but the employee has to report them as a taxable benefit. 

D) The employer can deduct the premiums but the employee has to report them as a taxable benefit