›

STD payments in Ohio

JCInfoJCInfo 41 Posts
in Benefits & Leave Vote Up0Vote Down
Quick question on the taxes that are required to be taken out of STD payments in Ohio . . .anyone?
Thanks,
Share on Facebook Share on Twitter

Comments

  • 1 Comment sorted by Votes Date Added
  • marcmarc 3,126 Posts
    PMVote Up0Vote Down
    I cannot answer for Ohio. I am in Nevada (no state income tax).

    STD is an employee optional benefit in our company. The taxation consequences depend on whether or not the EE opts to run the premiums through the Section 125 Cafeteria Plan - thus making the paycheck deductions pre-tax on thier paychecks or whether they opt to make the payments outside of the plan - thus paying the premiums after tax.

    With me so far?

    If the premiums are paid pre-tax, then the STD payments are fully taxable. In your state, that would include FWT, SWT, FICA, Medi, and any other mandated taxes.

    If the premiums are after tax, then the STD payments are just like life insurance proceeds, no taxes are paid.

    If your company is providing the benefit - I think the payments are fully taxable.

    By the way, run this by your accounting people - they should already know this.
    Share on Facebook Share on Twitter
Sign In or Register to comment.