Cost-Saving Disability Plans for Employers in Indianapolis and the surrounding areas.
Short-term disability (STD) provides partial wage replacement for employees who are temporarily unable to work due to a non-work-related illness or injury. The disability can last for a few weeks to a whole year.
An employee seeking short-term disability coverage typically needs to provide medical documentation from a healthcare professional stating the nature of their condition and expected recovery time. The most common reasons include surgery or illness recovery, an accident injury, or pregnancy/maternity leave.
Note that if the employee is injured on the job, their leave would be covered under your workers’ compensation insurance rather than your short-term disability policy.
While your provider and state may have specific requirements regarding short-term disability, employers can choose what type of plan they offer:
Note that short-term disability benefits are taxable if the employer pays for all or a portion of the insurance OR if the employee pays with pre-tax dollars (usually from their paycheck).
The BLS reports it costs employers approximately 1% of the total compensation cost, or $624 per full-time employee annually.
Any contributions that you make to a state program are deductible as taxes. Employees’ contributions are also deductible. However, if you opt for a private plan you may want to rethink that choice.
Many employers stack long-term disability in conjunction with a short-term disability group plan. This enhances employee benefits packages and attracts new talent while relieving your team during difficult situations.
When your team members know they have this additional safety net to fall back on, workplace morale will improve—and we know that higher morale equals higher retention and productivity. It pays to play it safe!
Short-Term Disability benefits are not just valuable perks—they’re a critical component of your company’s ability to attract and retain top talent. By offering comprehensive disability coverage, you’re not only protecting the health and well-being of your employees, but you’re also investing in the long-term success of your business.
Disability insurance provides coverage for hospital stays, including surgeries, intensive care, and rehabilitation.
Disability screenings, assessments, check-ups, specialist visits, and other outpatient services are typically covered.
Most disability plans include prescription drug coverage, helping employees manage the cost of their medications.
If an employer pays for an employee’s health or accident insurance plan, the employee must report any disability benefits as income. However, if an employee pays for the plan, they don’t need to report the benefits as income.
If an employee receives income from other insurance policies, retirement, or government programs, their disability benefit may be reduced.
There’s often a waiting period from when the employee becomes disabled to when benefits start to prevent abuse of disability benefits. This can range but is usually 14 days or fewer. Benefits typically begin on the eighth day after a claim is filed.
Because of the brief elimination period, short-term disability can ease financial stress as an employee waits for their long-term insurance to begin, which has a longer waiting period. Many choose to use both to supplement their income and lower costs.
employee plan.
Short-term disability benefits usually cover a percentage of the employee’s base pay, typically around 60-80%. However, this can vary based on your plan. Employees receive weekly benefit payments.
Long-term disability covers serious injuries, diseases, or debilitating illnesses that prevent an employee from returning to work for months or years.
Standard short-term disability benefit periods are 13, 26, or 52 weeks. The U.S. Bureau of Labor Statistics (BLS) reports that the median coverage length is 26 weeks.
“Jackson Health Advisors has been a game-changer for our small business. Their personalized service and comprehensive coverage have made managing our company’s employee benefits a breeze. And, there’s been no more complaints about lack of coverage. They found us an affordable plan that includes a large network of reputable care providers.”
Sarah D., Indianapolis
“Thanks to Jackson Health Advisors, we found an affordable employee benefits package that fits our budget and meets our needs. Beth found gaps in our policies, and, she switched us to a plan that met everyone’s needs and saved us thousands. The way she explained benefits and answered our questions, made everything so easy and digestible. Highly recommend!”
Mike D., Indianapolis
We are passionate about providing employee benefits in Indianapolis and the surrounding areas. Our local focus allows us to better understand and address the specific needs of our community.