The loss of income due to illness or injury can cause serious financial hardship for your family. Disability insurance replaces a portion of your income to help you continue to pay bills and meet your financial obligations.
STD | LTD | |
---|---|---|
Who pays? | Employer-paid | Employer-paid |
Benefit provided | Up 60% of your weekly base salary | Up to 60% of your monthly base salary |
Maximum benefit | Up to $2,310 per week | Up to $10,000 per month |
Maximum duration | Up to 26 weeks as long as you are on an approved disability leave | Until you’re no longer considered disabled or you reach normal retirement age, whichever comes first |
Waiting period | 7 calendar days | 180 days |
You are eligible for STD and LTD if you are an active full-time employee who works at least 30 hours a week. Coverage goes into effect automatically if you are eligible, as long as you are actively at work; you do not have to enroll.
Benefits may be offset (reduced) by other disability income you receive, such as Social Security disability benefits or workers’ compensation.
For more information about disability benefits, visit the The Hartford website or call 1-800-549-6514.
You have a choice as to when you pay taxes on STD — on the premium or on the benefit itself. Here’s how each option works:
Nutanix pays your STD premium … | So, by law, any STD benefits are … | And your current tax situation is … |
---|---|---|
Option 1: Premium Not Imputed (benefit is taxed) | Taxed as income if/when you receive them |
Not affected |
Option 2: Premium Imputed (benefit is tax-free) | Not taxable income if/when you receive them |
Affected — the value of the premium is “imputed income,” so you pay taxes on this amount |
Important: If you do not make an STD tax choice when you first enroll in benefits or during Open Enrollment each year, you will be automatically enrolled in Option 2: Premium Imputed (benefit is tax-free).
Because the value of the premium is “imputed income,”* it increases the taxable income reported on your W-2, and you pay taxes on this amount. If you do not want to pay imputed income on the STD premium that Nutanix pays on your behalf, you must actively elect Option 1: Premium Not Imputed (benefit is taxed) as your STD tax choice during the enrollment process. This means if you ever use your STD benefit, you will be taxed on any payments made to you from the STD plan at the time of payment.
Those who do not make an election will be defaulted to Option 2: Premium Imputed (benefit is tax-free) in Workday. This means that you will pay taxes on the value of the premium each pay period, and the STD benefit will not be taxed (because you paid taxes on the premium).
*Imputed income is the value of the Short-Term Disability benefit paid by Nutanix on your behalf.