HR Compliance: The importance of Disability Insurance
- On 13 July 2015
- Posted by Chantal Mariotti
Disability insurance is paid through payroll taxes. A serious injury or illness can prevent employees from bringing home enough of an income to cover their everyday expenses. Therefore, as a matter of HR compliance, employers are required by law to provide State Disability Insurance (SDI) to their employees in the event that they are unable to work. This employee benefit can provide financial security and a peace of mind when an employee is disabled.
Disability insurance contributions should be listed on payroll stubs, alongside other State taxes. Administered through the Employment Development Department (EDD), a certain amount of money gets deducted from an employee’s paycheck every pay period and goes towards their disability insurance. This small deduction can go a long way in the event that an employee is no longer able to make a living due to their illness or injury.
Both employers and employees have rights and responsibilities with regards to disability claims. If an employee is denied any disability benefits, he or she has the right to request an appeal. Employees are also entitled to privacy as well as knowing why their claim wasn’t accepted. In order to be eligible for the benefits, employees must accurately and truthfully complete the claim form and submit it prior to the deadline.
Give us a call if an employee makes a disability claim – we’ll make sure you handle the situation properly. If your employee is dealing with an injury or illness, we can help make sure that their claim is resolved appropriately. It’s important to know how the plan works, what benefits it provides, and how to properly file a claim. We can help you determine whether your employee is eligible for receiving disability benefits.
We make sure you’re not only HR compliant, but following HR best practices. We take additional steps to ensure that you and your company comply with all employment laws while also increasing employee relations and company morale. Do not avoid payroll taxes! It’s the law…