Short Term Disability Question

So my employer offers short term disability that I will be taking advantage of. I'm anticipating taking the 6 weeks for a natural delivery.

It's 60% of my pay but I will be receiving my full paycheck and will be responsible for the taxes. How are you handling this? Are you setting aside the 40%? Not sure what the best method is for this or if I'm even thinking of this correctly. I want to have the $$ set aside and not be slammed with a huge bill the beginning of next year.

I'd appreciate any feedback. Thanks.

Re: Short Term Disability Question

my short term disability doesnt give us a choice they take the taxes rt out of the check.
we also have to wait a grace period of 2 weeks so if i have a vaginal i get 4 weeks worth, and if i have a section i get 6 weeks worth, we shall see.

Re: Short Term Disability Question

Thanks for replying. I'm assuming my taxes will be taken out of my regular paycheck as they would be normally. I guess my issue is that I will be receiving my normal paycheck without that additional 40% removed. I'm wondering how to account for that. Perhaps set it aside?

Re: Short Term Disability Question

Are you sure you are getting your full paycheck plus the disability check at 60%.

Many times if the employer is paying you your full salary well out on disability they will take the disability check on your behalf. I would double check to see what they are exactly doing

Re: Short Term Disability Question

I sent an email to HR and am waiting for a reply. I don't think I will be receiving my paycheck and a disability check. I think I will be receiving my full paycheck and then I need to account for tax deductions. That's my understanding although I could be wrong.

Re: Short Term Disability Question

I am not sure how it works but my company is offering these bebfits to me as well. I have to get in touch with my HR dept. I am gonna contact them today. Vaginally is 6 weeks and C- section is 8 weeks. 60% of your salary.

Re: Short Term Disability Question

Re: Short Term Disability Question

Re: Short Term Disability Question

Short Term Disability Question

I feel your frustration. I spent all day yesterday trying to clarify my benefits. I didn't even think about the tax situation. Ugh! One more thing to think about. Do you usually get a tax refund or do you owe every year? Keep in mind you're going to get an extra deduction for the baby. So I would set aside some money for the taxes, but I wouldn't stress about it too much, since it's only 6-8 wks.

Re: Short Term Disability Question

Posted by EandF

Posted by MrsO

Posted by EandF

I sent an email to HR and am waiting for a reply. I don't think I will be receiving my paycheck and a disability check. I think I will be receiving my full paycheck and then I need to account for tax deductions. That's my understanding although I could be wrong.

If the company is sending you your regular paycheck they should be taking the normal taxes out.

This is some of the info I received. Short term disability will only cover 60% of your weekly pay. There are no tax deductions when you receive your payments but payments are treated as income and you will be taxed at the end of the year. Short term disability co will send you a W-2 at the end of the year with instructions on how to file.

Maybe I'm dense, but this does not clarify things for me. Just to use round, easy number, let's say I may $1000/week. So under short term disability, I will be getting 60%, so $600/week. If I receive my full paycheck, I will need to set aside the $400/week not covered by short term disability as well as taxes. Does this sound right? I just want to set aside all $$ that I'm not entitled to so I'm not hit with a huge bill later on.

Re: Short Term Disability Question

Posted by EandF

Posted by MrsO

Posted by EandF

I sent an email to HR and am waiting for a reply. I don't think I will be receiving my paycheck and a disability check. I think I will be receiving my full paycheck and then I need to account for tax deductions. That's my understanding although I could be wrong.

If the company is sending you your regular paycheck they should be taking the normal taxes out.

This is some of the info I received. Short term disability will only cover 60% of your weekly pay. There are no tax deductions when you receive your payments but payments are treated as income and you will be taxed at the end of the year. Short term disability co will send you a W-2 at the end of the year with instructions on how to file.

Maybe I'm dense, but this does not clarify things for me. Just to use round, easy number, let's say I may $1000/week. So under short term disability, I will be getting 60%, so $600/week. If I receive my full paycheck, I will need to set aside the $400/week not covered by short term disability as well as taxes. Does this sound right? I just want to set aside all $$ that I'm not entitled to so I'm not hit with a huge bill later on.

Re: Short Term Disability Question

Thanks so much for the responses everyone. I'm just trying to wrap my head around all of this and your answers definitely helped clarify things.

Re: Short Term Disability Question

Is there a cap on how much you get a week or is it 60% regardless? My employer also said they offer STD just didnt specify anything. do i call STD myself and give them my employer info to find out?