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January 25, 2023
Question

Does short term disability fall under paid family leave if I was paid 60% of my salary?

  • January 25, 2023
  • 1 reply
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I'm in Texas and was out for two weeks due to an injury.

1 reply

MichaelG81
January 25, 2023

In general, yes an employer is getting a credit for certain qualified paid leave. Short Term Disability depending on how the policy was purchased or who paid the premiums are usually taxable. However, if you paid the premium with after tax income, it is tax free. Paid Family Leave is usually a credit for employers who provide time off to employees. 

 

If you are an employer, click here for more information on what qualifies you for the Paid Leave Credit. To know if a similar credit is available to self employed individuals click here.

 

Also, Section 45S Employer Credit for Paid Family and Medical Leave FAQs

 

@smuncaster16

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