Quote:
Originally Posted by GGG
Isnt short term disabilty untaxed though as you are taxed on the premiums and therefore not the benefit? Could be completely wrong but I remember our HR people saying that for either short term or long term. If so 70% is about right for salary replacement.
I think that 15 days is excessive, especially when thereis no real way to deal with abusers. In the private sector 8-10 with no carry over isquite common. Giving everyone sick days is a very expensive form of insurance. Instead of paying a small premium for all employees for short term disability you are paying 100% of employees for 6 months of disability and hoping they dont abuse it and give it back.
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disability plans (long or short term) are non-taxable if the employees pay 100% of the premiums. If the employer pays all of it it is fully taxable and if both pay you can deduct the amount of premiums paid from the amount you have to report as taxable.