Jonas pays 25% of his employer's disability insurance premium. What is his tax liability on benefits received from this plan?

When an employee pays a portion of the disability insurance premium, the tax treatment of benefits received from that policy is affected by the percentage of the premium that the employee covers. In this case, since Jonas is paying 25% of his employer's disability insurance premium, he is using after-tax dollars for that portion.

Because Jonas is contributing to the premium with after-tax income, he will receive tax-free benefits for the amount corresponding to his contribution. Since the employer is covering the remaining 75% of the premium using pre-tax dollars, benefits corresponding to this portion will be taxable as income when received.

Therefore, Jonas will need to pay taxes on the 75% of the benefits he receives, as it represents the part funded by his employer. This aligns with the general tax principle that any employer contributions that result in tax-free benefits to employees are taxable when paid out, as they were funded with pre-tax dollars.