Quote:
Originally Posted by iggy_oi
I believe the STD/LTD benefits are also none taxable if the premium costs are shared between employer and employee regardless of how those costs are divided but I’ve personally never dealt with that situation, can you confirm if that is generally the case?
My understanding has been that so long as the employee covers any portion of the STD/LTD premiums it’s not taxable.
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This is kind of true, however, you also run into businesses or...Governments, that self insure.
Some Governments for their employees do not take out LTD policies and as such just continue to pay their employees, while on Disability, but at a reduced rate, but because of that the Disability amounts are taxable, because its just considered reduced pay.
Whereas other companies that hold Disability policies with insurers, those policies are typically non-taxable.