[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-303121-105":53,"doc-detail-303121-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","tax-on-disability-7-15-2013","Tax on Disability - 7-15-2013","","Guidance explains when disability benefits can be taxable income under the U.S. Internal Revenue Code and how different taxes apply to disability payments. It distinguishes taxable vs non-taxable treatment based on whether premiums are employer-paid or employee-paid with pre-tax or post-tax dollars, and describes an IRS Revenue Procedure election option. It details federal, FICA, state, local withholding rules, including when withholding is mandatory or voluntary, the Form W-4S process, and FICA duration and reset triggers.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/tax-on-disability-7-15-2013/303121/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/tax-on-disability-7-15-2013/303121.png","ImageObject",442,249,{"name":88,"@type":89},"Riley","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-05","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":79},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"When are disability benefits taxable for employees?","Question",{"text":108,"@type":109},"Disability benefits are generally taxable when premiums are paid by the employer or by the employee on a pre-tax basis. They are generally non-taxable when the employee pays with post-tax dollars, subject to specific exceptions.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What are the main taxes that may apply to disability benefits?",{"text":113,"@type":109},"Disability benefits may be subject to Federal Income Tax (FIT), Social Security/Medicare (FICA), State Income Taxes, Federal and State Unemployment Taxes (FUTA and SUTA), and Local Income Taxes where applicable.",{"name":115,"@type":106,"acceptedAnswer":116},"How is the FICA withholding period determined, and when does it reset?",{"text":117,"@type":109},"FICA is withheld for the period starting the day after the last day worked through the last day of the sixth complete calendar month after the last day worked. If the disability begins on a non-first day, that partial first month doesn’t count; only complete calendar months count. If the employee returns to work even one day and then goes back on disability the next day, the six-month FICA period restarts.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},303121,1790227892,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":79,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":73},1374391975076,"https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051","7/15/2013  \nWhy should the Employer be concerned about taxes?  \nSpecial tax rules apply to the reporting of disability benefit (also referred to as sick pay by the IRS) payments to employees. Disability benefits generally refer to any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. Under the U.S. Internal Revenue Code, disability benefits may be taxable income to the employee. Generally, disability benefits are subject to the following taxes:  \n1. Federal Income Tax (FIT)  \n2. Social Security / Medicare Taxes (FICA)  \n3. State Income Taxes  \n4. Federal and State Unemployment Taxes (FUTA and SUTA)  \n5. Local Income Taxes, where applicable  \nIf you offer short-term or long-term disability benefits to your employees, then you, as the Employer, need to be aware of the tax withholding and reporting requirements. For additional information please refer to your tax attorney or consultant or to IRS Publication 15-A, Chapter 6, Sick Pay Reporting on their website [at www.irs.gov](at www.irs.gov).  \nWhat is a taxable benefit?  \nThe most important question to consider when determining if a disability benefit is taxable is whether the premiums are paid by the employer or the employee, and if employee paid, is the premium paid on a pre-tax or post-tax basis? Generally to the extent that disability premiums are paid by the employer, or by the employee on a pre-tax basis, the benefit is taxable. To the extent that the employee pays the disability premium with post-tax dollars, the benefit is nontaxable. There is an exception to the general rule for employer paid premiums that are reported as taxable wages to the employee. IRS Revenue Procedure 2004-55 permits employers to offer a plan where employees can elect on an annual basis to either have, the value of employer-provided coverage included in their income on an after-tax basis, or to have the value of their coverage excluded from their income. The premiums that are included in an employee’s wages are treated as employee paid and benefits received by such employees are nontaxable.  \nSee Exhibit A (on the following page) for an illustration of benefit taxability.  \nWhat are the tax withholding requirements?  \nThe tax withholding requirements for fully insured customers are outlined below.  \n\n|  | Federal Income Tax | Employee FICA | State Taxes | Local Taxes |\n| --- | --- | --- | --- | --- |\n| Fully Insured | Voluntary | Mandatory | Voluntary | Voluntary |\n\nMandatory withholding means the FICA taxes are automatically withheld from the taxable portion of an employee's benefit.  \nVoluntary withholding means that the disability benefit is not subject to income tax withholding unless, the disabled employee requests that an amount determined by the employee be withheld from his/her disability benefit. When filing a disability claim, the disabled employee must complete a Form W-4S indicating the amount of federal taxes to be withheld, if any. For state and local (where applicable) taxes, the employee must submit to the MetDisability Claims office in writing, the amount of state and/or local taxes to be withheld. Copies of Form W-4S can be obtained from the MetDisability Claims office, or on the IRS website [at www.irs.gov](at www.irs.gov).  \nFor employees requesting federal withholding, the amount requested to be withheld must be at least $4 per day, $20.00 per week or $88.00 per month. There generally is no minimum amount that must be requested for state tax withholding. Note that the State of Illinois requires withholding for Illinois state taxes if federal withholding is elected.  \nHow long is FICA withheld?  \nFICA taxes are required to be withheld for the period beginning on the date following the last day that the employee worked for the employer and ending on the date that is the last day of the sixth complete calendar month following the last day the employee worked. Both taxable STD and LTD payments issued within this t","cbCairHWHGACGqDE","https://ap.wps.com/l/cbCairHWHGACGqDE","pdf",61014,6,"English","# Why the employer should be concerned about taxes\n## What is a taxable benefit?\n## What are the tax withholding requirements?\n## How long is FICA withheld?\n## When are FICA taxes withheld longer than 6 months?\n## What are the tax remittance requirements?","[{\"question\":\"When are disability benefits taxable for employees?\",\"answer\":\"Disability benefits are generally taxable when premiums are paid by the employer or by the employee on a pre-tax basis. They are generally non-taxable when the employee pays with post-tax dollars, subject to specific exceptions.\"},{\"question\":\"What are the main taxes that may apply to disability benefits?\",\"answer\":\"Disability benefits may be subject to Federal Income Tax (FIT), Social Security/Medicare (FICA), State Income Taxes, Federal and State Unemployment Taxes (FUTA and SUTA), and Local Income Taxes where applicable.\"},{\"question\":\"How is the FICA withholding period determined, and when does it reset?\",\"answer\":\"FICA is withheld for the period starting the day after the last day worked through the last day of the sixth complete calendar month after the last day worked. If the disability begins on a non-first day, that partial first month doesn’t count; only complete calendar months count. If the employee returns to work even one day and then goes back on disability the next day, the six-month FICA period restarts.\"}]","Tax on Disability - 7-15-2013 | PDF",1789800011]