Which of the following two benefits are taxable?

When an employer pays disability insurance premiums, those payments are made with pre-tax dollars and are deducted as a business expense. Because the employee never paid tax on the premium, any disability benefits received flow through as taxable ordinary income under IRS rules - the tax is simply deferred from the premium stage to the benefit stage.

Disability benefits purchased by the employee with after-tax dollars are received tax-free because the employee already paid income tax on those premium dollars - the IRS does not tax the same dollars a second time upon receipt of benefits.

Base pay - wages and salary - is the foundational form of taxable compensation; it is always subject to federal income tax, FICA (Social Security and Medicare taxes), and applicable state and local taxes with no exclusion available under any provision of the Internal Revenue Code.

Work-related company vehicle use is generally treated as a non-taxable working condition fringe benefit under IRC Section 132 when the vehicle is used solely for legitimate business purposes - only personal use of a company vehicle creates a taxable fringe benefit.