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Disability benefits are payments that guarantee income when an employee cannot work because of sickness (physical or mental) or accident. The length of the disability and its cause are two key factors in determining the form of disability benefit that may apply. Disability periods may be temporary or permanent and may result from an on-the-job accident or illness or may be totally unrelated to work.
Disability benefits you can offer. Should you decide to offer disability benefits, here are some possible choices:
Other mandated disability benefits. There are other state- or federally-mandated programs for employees who become disabled. They are not benefit programs, per se, in that you do not have to purchase them as you would a conventional benefit plan, but you may be required to pay for them, administer them in part, and provide employees with information about them. These benefits include:
- workers' compensation
- state-run temporary disability programs (only in California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island)
- federal Social Security disability benefits