View full size image. The male reproductive system consists of two major parts: the testes, where sperm are produced, and the penis, according to Merck Manuals. The penis and urethra belong to both the urinary and reproductive systems in males.
Therefore, disability benefits received by a partner/owner are. not taxable to the partner/owner. When the business pays the entire premium for. employees, then the disability benefits are taxable to the employees. Sole Proprietors. With a sole proprietorship, the owner and business are one and the same.
Disability Benefits - Taxability. Income you receive from disability income insurance may or may not be taxable. If any portion is taxable, you must report that portion on your IRS Form 1040, FTB Form 540 or other State income tax form.