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.
Most workman's compensation disability benefits are not taxable. There is, however, an important exception to this basic rule. According to the IRS, the tax exempt rule does not apply if you receive retirement plan benefits tied to your age, length of service or any prior contributions you made.