Darla K
Jun 23 2003, 11:38 AM
I have a client where the employer pays 75% of the premium for his short term disability, and he pays the other 25% of the premium.
Is the 25% of the premium eligible to be a pre-tax deduction or is it a post-tax deduction on his paycheck?
SLuskin
Jun 23 2003, 11:54 AM
Yes, if listed in the plan document.
MSMA
Jun 23 2003, 11:57 AM
It's my understanding that, while you can do it either way (according your own Plan Doc) - it is often considered BEST to take taxes out - so that should the ee need to make a disability claim, they would not have to have their benefit reduced.
oriecat
Jun 23 2003, 12:58 PM
Yes, that's exactly the reason why we are not allowing our disability to be paid pre-tax.
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