AspenHR offers our employers both Short and Long-Term disability benefit plans to choose from for your eligible employees. Both options are employer-funded and require 100% participation. The plans have a gross-up feature requiring that employees are taxed on the premiums paid by the employer which then allows for any benefits received by the employees to be non-taxable. Please reach out to ASPENHR if you have further questions.
The Short-Term Disability plan is designed to provide income replacement if an eligible employee is unable to work due to injury or illness, including maternity. After 7 days of disability, employees will be eligible to receive 60% of pre-disability weekly earnings subject to the plan’s maximum weekly benefit of $2,500 (non-taxable).
The Long-Term Disability plan is designed to provide income replacement if you are unable to work for a period longer than 180 days due to injury or illness. After 180 days of disability, employees will be eligible to receive 60% of pre-disability monthly earnings subject to the plan’s maximum monthly benefit of $10,000 (non-taxable). LTD benefits are extremely valuable as they provide income protection until Social Security Normal Retirement Age in the event of a total permanent disability.