Exemptions From The Minimum Standards For Vacations And Vacation Pay
Some employees who work in specified industries and professions arent eligible for annual vacations and vacation pay, including:
- licensed or registered salespersons of real estate and securities
- commission salespersons who solicit orders principally outside the place of business of their employer route salespersons are not exempt
- extras in a film or video production
- licensed insurance salespersons who are paid entirely by commission income
What If My Doctors Cant Give Me A Diagnosis For My Disability
Generally speaking, most disability insurance policies do not require that a diagnosis be given before a person is found to be totally disabled. What is considered are the persons restrictions and limitations that prevent him or her from working in his or her own occupation or any occupation. A person can have restrictions and limitations without having a clear diagnosis.
Can I Collect Voluntary Short
No. Although the plan is flexible and gives you the option of using any accrued sick time or PTO before benefits are paid, STD benefits are offset for any days you elect to use sick time or PTO after the 28-day waiting period. Benefits are reduced by the amount of other income benefits you receive while disabled, such as sick/vacation leave, paid time off, parental pay, or Kiel. For example, if an employee was paid $200 in PTO after the 28-day waiting period, then the voluntary disability carrier would reduce, or offset, the approved short-term disability benefit by the $200 PTO paid as other income. If the short-term disability benefit payable was $500, then it would be reduced by $200 due to the PTO paid, thus resulting in a $300 STD benefit.
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What Happens If I Quit My Job While On Short Term Disability
Unlike a leave of absence you might take under the Family and Medical Leave Act , short-term disability doesnt offer any direct job protection. Many people are surprised to hear that you can legally be fired from your job while on leave, and you also arent entitled to the exact same position when you return.
Do I Legally Have To Give 4 Weeks Notice
If you want to leave your job youll normally need to give your employer some warning. If youve been in your job for less than a month, you dont have to give notice unless the contract or terms and conditions require you to. If youve been in your job for more than 1 month, you must give at least 1 weeks notice.
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What You Need To Know About Short And Long Term Disability Payments
Do you have your statutory deductions and insurable hours straight when it comes to different forms of disability?
Short term and long term disability payments paid by an employer through payroll and paid directly to the employee are subject to which statutory deduction?Do the payments need to have insurable hours attached to them?All the statutory deductions: Both short term and long term disability payments paid by an employer through payroll and paid directly to the employee are subject to all the statutory deductions Income Tax, Canada Pension Plan, and Employment Insurance. In the case of Québec: Income Tax, Québec Pension Plan, Employment Insurance and the Québec Parental Insurance Plan. In addition, the income associated with the payments must have insurable hours attached to them equal to whatever the employees deemed hours normally would have been had they been working. Insurable hours are hours for which the employee receives insurable earnings and Wage-loss insurance paid by the employer is insurable.Natasha Smyth, B.SC., CPMFor more information contact
How States Tax Short
Taxation doesnt begin and end with the federal government, unless you live in one of the nine states that dont have an income tax:
New Jersey, California, and Rhode Island dont tax short-term disability benefits, but the IRS imposes a few wrinkles.
For example, the IRS requires that employers in New Jersey must treat short-term disability benefits as third-party sick pay. That makes short-term disability taxable at the federal level according to IRS rules, even though the benefits arent taxable at the state level. This includes the half of FICA taxes that are paid by the employer.
As for California, employees are required to pay into the states disability insurance program through payroll deductions. But the IRS only taxes these benefits if theyre considered to be a substitute for unemployment insurance, in which case your employer should send you a Form 1099-G reporting the income. Otherwise, your short-term disability benefits arent taxable.
If youre not sure whether short-term disability is taxable in your state, check with your employers human resources department or a local tax professional.
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If You Become Disabled Will You Have To Pay Taxes On Your Disability Pay The Answer: It Depends
If you suffer some disabling ailment or injury, youll be glad to have disability pay coming in. However, its important to understand that the IRS and your state may want to take a cut of that pay. Some sources of disability pay will be taxed as income, while others are completely tax-free, and still others may or may not be taxed depending on the situation.
Medical Certification Or Examination
Supervisors may require certification of illness from an employees physician or a medical examination with another physician to verify the need for continued absence.
To be certain that an employees health permits his or her safe return to work, the University may require medical certification or an examination by Yale University Health Services in appropriate cases.
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Paying Back A Disability Payout
In many cases, individuals who are approved for SSDI will not be approved for a significant period of time after they initially apply. In addition to the time that it takes to be approved for SSDI benefits, there is also a 5 month waiting period before the SSA will start payments. This time period begins to run after the date that a persons disability started.
After an individual is approved for SSDI benefits, he or she may be eligible for both monthly payments as well as past-due payments back to the date of their disability. This amount may be paid in installments or in a lump sum. A person who is also receiving LTD benefits will generally be expected to pay back the insurance company from this pay out from SSDI.
Using the example above, assume that you have been receiving $2,500 a month in LTD benefits for 10 months, and were just approved for SSDI payments in the amount of $1,000. You received a past-due lump sum payment in the amount of $10,000, which covers each month from the date of your initial disability until the current month. You will be required to pay the insurance company the full $10,000 $1,000 for each month of disability payments.
How Much Does Short
How much youll receive varies, but a good rule of thumb is that your employer will cover 40-80% of your salary while youre on leave. Each state sets mandated limits on how much coverage you can receive. SHRM notes that benefits may be coordinated with other income such as paid sick leave to ensure that income benefits do not exceed 100 percent of base pay.
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Vacation Payout On Separation
All accrued, but unused, vacation must be paid to an employee who separates from the employer. Vacation is considered earned wages and must be paid at the same time as the employees final wages:
- If an employee is fired, the final paycheck is due at the time of discharge.
- If an employee quits with 72 hours notice, the final paycheck is due at the time of quitting.
- If an employee quits with less than 72 hours notice, the final paycheck is due within 72 hours of the time of quitting.
Paid sick days that are part of a separate sick leave policy are not subject to the same rules and do not have to be paid out when an employee leaves the company. However, when sick days are included in a general PTO policy, all of the PTO is treated like vacation and must be paid out on separation.
What Counts As A Disability
There isnt one standard definition for a disability that applies across the board here.
Its all plan- or policy-specific, says Chicago-based attorney Michael Bartolic, whose firm focuses on employee benefits and deferred compensation. As a general observation, its any sort of injury or illness that renders one unable to do their job.
That could include things like childbirth, a major surgery with a long recovery period, an illness that requires frequent treatment, or an injury sustained in some sort of accident. Bartolic explains that the best thing to do is to check your plan documents, as the definition of disability should be clearly spelled out there.
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Ask The Expert: Can We Require Pto Use During Short Term Disability Leave
Question:I am looking for best practices on requiring or not requiring use of PTO in our Short Term Disability leave policies.
Answer: When employees are injured or disabled or become ill on the job, they may be entitled to medical and/or disability-related leave under two federal laws: the Americans with Disabilities Act and the Family and Medical Leave Act . In addition, state Workers Compensation laws have leave provisions that may apply. Depending on the situation, one or more of these laws can apply to the same employee.
When employees need time off because of a medical or disability-related issue, it is important to remember that they may have rights under all of these laws at the same time. In certain circumstances, provisions of the ADA, the FMLA and Workers Compensation laws can apply to the same employee, and employers may find understanding their responsibilities a challenge.
For example, a Workers Compensation injury that requires hospitalization or incapacitates an employee for more than three days and requires continuing treatment by a healthcare provider generally qualifies as a serious health condition under the FMLA. If the injury causes a permanent mental or physical impairment that substantially limits a major life activity, that same employee could be entitled to additional leave as a reasonable accommodation under the ADA.
Do You Need To Pay Taxes On Your Ssdi Benefits
Whether or not you will need to pay taxes on your Social Security Disability benefits will depend on the amount of income you received last year. If your income minus your deductions is greater than the base income , any amount of income you made over the base income for your status is taxable.
On top of figuring out whether a portion of your income will be taxable, you will also need to figure out at what percentage that portion will be taxed. Similar to a standard tax bracket system, the higher you are above the base income, the more your benefits will be taxed. This can greatly assist those individuals and families who are just above the base income for taxation, but not drawing enough money to be taxed at a higher rate.
While the tax legalese can be confusing, you should have received two forms from the Social Security Administration that should make the process easier: Form SSA-1099 and Notice 703, which is a worksheet that helps you determine your income.
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What Should I Do If I Am Unable To Work Due To A Disability
You should consult with your doctor or other medical specialist in order to start or continue with the appropriate medical treatment. In addition, you should keep a chronological diary of major events surrounding your illness and disability as they occur. If you have not already done so, use your memory in order to recreate as accurately as possible a diary of such events and then note when you continue with diarizing events as they occur. The type of information which you should include in your diary includes:
- What caused you to stop working and the date on which the injury or illness occurred
- Changes in your health and your ability to function
- When you were first treated for the medical condition which caused you to stop working
- Dates and particulars of all doctor and specialist appointments
- Dates and particulars of all hospital visits
- Dates and particulars of all diagnostic testing
- Dates and particulars of all other health and medical appointments
- Particulars of telephone calls or meetings with your employer regarding your ability to work and any modifications to your job as a result of your disability
- Particulars of any telephone calls or meetings with your insurance carrier
- Particulars of any telephone calls or meeting with rehabilitation or occupational therapy specialists
- When you applied for disability benefits or any other types of benefits such as motor vehicle accident insurance benefits, CPP disability benefits, EI benefits, etc.
How Does Short Term Disability Insurance Work
To get a better idea of how short term disability works, let’s start by answering some FAQs:
- How much does short term disability pay? If you qualify for short term disability benefits, you will typically be reimbursed for about 60 percent of your lost wages. Depending on the policy, the benefit may be as low as 40 percent or as high as 70 percent. Most policies have a benefit cap as well.
- When does short term disability start? Before short term disability benefits kick in, there is typically an elimination period of 14 days. However, this waiting period may be as short as one week or as long as one month.
- How long is short term disability? Short term disability benefits generally last around three to six months. However, some plans may pay as long as one or even two years.
But that’s just the tip of the iceberg. Let’s take a closer look by comparing short term disability insurance side-by-side to other similar types of coverage.
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Can My Employer Terminate Me After My Short
The answer depends on the reason for termination. In the short-term, your employer cannot legally terminate you because of your sickness or disability. But if your employer could prove that your termination had nothing to do with disability, then they can legally dismiss you, even if you are on sick leave.
Keep in mind that there is no guaranteed employment in Canada. All employers can dismiss an employee upon giving reasonable notice of termination, but there are some exceptions to this general rule. One exception is that an employer cannot dismiss an employee based on a discriminatory reason disability falls under this category.
If you experience a short-term disability denial, the insurance company will inform your employer. Many employers will assume that this means you are fit for a return to work and will treat your failure to do so as unauthorized absenteeism. Therefore, it is critical that you provide new medical information to your employer confirming that, regardless of the insurance companys decision, you continue to be unable to work due to disability. You must put your employer on notice of your continuing disability in order to trigger protection under anti-discrimination human rights laws.
Coverage Is Not Offered By Your Employer
Though both long-term and short-term disability insurance are available through many employers, you should never assume that they are. As I wrote at the beginning, most people are most concerned with health insurance and retirement plans. Disability insurance is often considered to be a throw-away benefit, especially if youre young.
Never assume that you have short-term disability insurance at work. Find out if you do, and what kind of benefit provisions you have. If not, a private plan is an outstanding idea.
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Requiring Use Of Pto With Fmla Leave
*Question:We are currently reviewing our Family Medical Leave Act policy and are considering requiring employees to use some portion of their accrued Paid Time Off in conjunction with FMLA. Our employees currently have the choice of taking unpaid FMLA leave or applying PTO time . I am curious whether other employers currently require use of some PTO in conjunction with FMLA.1. Does your FMLA/medical leave policy require employees to use PTO/vacation days?If yes,2. Is PTO/vacation mandated for both continuous and intermittent leaves?3. How much PTO/vacation must employees use?Wisdom of the Crowd:
Response # 1: We require our employees to use any accrued PTO concurrently with FMLA leave.
When You Have To Pay Back Social Security Disability Insurance Benefits
If you receive SSDI, there is a possibility that youâll have to pay back your benefits to the government. When this happens, itâs because an overpayment occurred. Essentially, either the SSA was paying you too much for your particular disability, or you started earning so much money that you lost your eligibility for benefits but didnât alert the government.
In order to avoid having to payback a Social Security disability payment, you should alert the SSA if you recover in whole or in part from your disability. The SSA allows you to earn up to $1,180 per month and still be eligible for benefits. If you earn more than that, your benefits become an overpayment that youâll be required by law to pay back.
If youâre told youâve been receiving too much in SSDI benefits, you can always appeal the decision and prove that youâre still eligible for the original payout amount. Successful appeals may hinge on how the overpayment occurred and how much of a financial burden it would be to repay the overpayment.
When youâre asked by the SSA to repay an overpayment, youâre sometimes required to pay a very large amount of money. In this case, you can often negotiate a payment plan that amounts to a certain percentage of your income each month.
As with long-term disability insurance, if you keep receiving Social Security disability benefits despite being able-bodied, you could be fined or face prison time.
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