Let's talk taxes: disability insurance and taxation
I’m not a tax professional, but I do know that when it comes to employee benefits, surprises are rarely good. So let’s dig in.
By Michelle J. Smith|February 14, 2020 at 10:11 AM
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Either the premium or the benefit is taxed. If the employer pays the entire premium, then the employee pays all taxes on the benefit. If the employer pays any part of the premium and the employee pays the remaining balance with post-tax dollars, then the benefit received is taxed in the same proportion. If the employee pays the whole premium with post tax dollars, then the benefit received is not taxed.
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