Disability Insurance for companies
There are actually a few states that will require a company to get short term disability insurance for all of its employees, however in most states it’s not a requirement for a company to open, or run a business without it. We believe that it really is important for you to look after your business interest with an individual disability insurance plan on yourself, plus a Overhead Expense policy for your company. Once these two policies are set in place, the following stage is to start insuring your key employees with long term / short-term disability benefits. As a company you have the option of buying group disability benefits for every one of your workers, or coverage for one or two exclusive individuals.
Is Disability Insurance Coverage tax deductable?
The IRS has ruled (Rev.Rul.55-26, 1955-2 CB 11) that insurance rates paid for an overhead insurance plan is tax-deductible since it is a business expense. Whereas the benefits paid out for a claimant will be taxed as wages.
A very common strategy today for small businesses, is to offer voluntary benefits to staff. They can sign up any worker who wishes to participate in the disability protection, and then the employee pays for their benefits. This approach does not cost a whole lot of money to a business, and employees who chooses to take on the month-to-month premiums will receive excellent disability insurance coverage at reduced rates because of their company affiliation.
For more information on Disability Insurance contact Powers Insurance Partners at 773-718-8902 or fill out our online form above for your FREE Disability Insurance Quote today.
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