Does Employer Pay Disability Insurance?

1. 

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   Tim Wilhoit

   Owner, Your Friend 4 Life, Brentwood TN

   Yes, there are group disability plans that an employer will pay the premiums as an employee benefit. The upside is the employees are receiving a free benefit as a perk of working for the company. The down side of group disability plans are they are tax deductible for the employer, therefore if the employee draws benefits these are subject to income tax. If you purchase your own disability insurance plan with after tax premiums your benefits are tax free.

   Answered on November 16, 2014

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2. 

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   Peggy Mace

   Most of the U.S.

   You employer may pay for your disability insurance, or pay part of the premium, or allow you to pay for the premium of the group plan your employer offers. You can contact your Human Resources department of a larger business, or ask your employer or office manager of a smaller business, to see if you have disability benefits, and ask how they are paid.

   Answered on November 16, 2014

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