Employer-paid premiums for qualified long-term care insurance are:

Under the Internal Revenue Code (IRC), employer contributions to an employee's qualified long-term care (LTC) insurance plan are treated similarly to accident and health insurance premiums. These payments are considered an ordinary and necessary business expense for the employer and are therefore tax-deductible. This tax treatment is intended to encourage employers to provide these benefits. Concurrently, these employer-paid premiums are generally excluded from the employee's gross income, meaning the employee receives the benefit tax-free.

A. The value of employer-paid premiums for qualified LTC insurance is specifically excluded from the employee's gross income under IRC § 106.

C. An employee cannot deduct premiums on their tax return that were paid for by their employer; only self-paid premiums may be potentially deductible.

D. This describes a reimbursement or payroll deduction arrangement, not the standard tax treatment of a benefit paid directly by the employer.

1. Internal Revenue Service (IRS) Publication 15-B, Employer's Tax Guide to Fringe Benefits (For use in 2024). In the "Accident and Health Benefits" section, it states: "In general, this exclusion applies to contributions you make to a plan to provide health or accident insurance coverage, including qualified long-term care insurance..." This confirms the benefit is excluded from employee income (making A incorrect) and is treated as a standard employee benefit, which is a deductible business expense for the employer.

2. Internal Revenue Code, 26 U.S.C. § 162(a)(1). This section allows for the deduction of "all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including... a reasonable allowance for salaries or other compensation for personal services actually rendered." Employer-paid insurance premiums are a form of employee compensation.

3. Internal Revenue Code, 26 U.S.C. § 106(a). This section explicitly states: "Except as otherwise provided in this section, gross income of an employee does not include employer-provided coverage under an accident or health plan." Qualified long-term care insurance is treated as an accident and health plan for this purpose.

4. Kaplan, S. (2012). Federal Taxation of Life Insurance. American Bar Association. In Chapter 10, "Long-Term Care Insurance," the text clarifies the tax treatment for employer-sponsored plans, stating, "If an employer pays the premiums on a qualified long-term care insurance contract for an employee, the employer may deduct the premiums as a business expense... The employee does not have to include the amount of the premiums in gross income." (Section on Employer-Provided Coverage).