MANAGEMENT

Detailed explanation-1: -The premium paid by the employers to insure their employees is termed as a business expense for the company. This expense is shown in the employer’s profit and loss account and is eligible for tax benefits in accordance with the Indian Income Tax Act, 1961.

Detailed explanation-2: -As mentioned above, in Section 17 of the Income Tax Act, the premium paid by the employer for group health insurance is considered to as a “profit in lieu of salary”. This means, the premium paid becomes a part of the fringe benefits or other employee benefits and is thus considered as a business expense.

Detailed explanation-3: -The biweekly pay period is the most common, followed next by weekly, then semimonthly, then monthly. Certain pay periods tend to dominate in individual industries; an example being the use of weekly pay periods by 82.4 percent of construction establishments.