How to Show Short-Term Disability Payments on a W-2?

Answer Short-term disability payments provide income during a period an employee may not be able to work due to illness, injury or pregnancy. Employers contract with third-party insurance companies to pr... Read More »

Top Q&A For: How to Show Short-Term Disability Payments on a...

Are short term disability benefit payments taxable for an employer provided and paid short term disability plan?

Answer Yes, all employer paid benefits and wages are taxable. There is a way around that if you are an executive. 4lifeguild

Are short term disability payments taxable?

Whether or not short term disability payments are taxed depends on when the payments are made. If the premium was paid using after-tax money, then the benefit payments will be tax free. If the prem... Read More »

Are voluntary short-term disability payments taxable?

Many individuals receiving short-term disability benefits must file a tax return. The Internal Revenue Service may tax either actual benefits paid to the taxpayer or premiums paid for the disabilit... Read More »

Are short term disability claim payments considered earnings?

It depends on how the short-term disability premium is paid. If paid by after-tax dollars, it is considered tax-free income. However, if your employer pays part of the premium or if before-tax doll... Read More »