Noncontributory Short-term Disability Insurance

What is Noncontributory Short-term Disability (STD)?

Noncontributory Short-term Disability insurance is an employer-sponsored benefit that covers a portion of your income if you need to miss work due to injury or sickness.

How do I enroll in Noncontributory Short-term Disability?

All benefit-eligible employees are automatically enrolled in the Noncontributory short-term disability benefit. You can reference your enrollment and plan document anytime through your Justworks account. Select the “Benefits” > “Ancillary Benefits” section of your Justworks account, then scroll to the Short-term Disability (STD) Insurance icon.

Who in my company would be eligible to enroll?

Eligible members would be:

• Full-time employees

• Part-Time Employees (must be working 30+ hours and benefits-eligible)

• Both Paid owners and Unpaid* owners

  • Unpaid Owners:

    • Premiums: Employers are automatically charged the maximum premium amount for an unpaid owner's policy

    • Claim Payout: Unpaid owners will be given the maximum payout in cases of a claim

Is Noncontributory Short-term Disability (STD) coverage restricted in some states?

There are no state restrictions.

What will my company be charged when offering Noncontributory Short-term Disability (STD)?

When offering Noncontributory Short-term Disability (STD) through Justworks, the employer will only pay the monthly premiums, charged directly to the employer's invoice. There are no other fees associated.

The employer will be charged premiums on the second semi-monthly payroll.

What income is covered by STD?

Only Basic earnings and commissions are included in the calculation of benefit payment. The benefit payment does not include, but is not limited to:

• Grants, award, conversion, and/or exercise of shares of stock
• Employer 401k match
• Any other compensation from your employer

How much income is covered by STD?

Depending on your employer’s policy, the short-term disability insurance will cover a different percentage and maximum of your weekly earnings. Please check your plan by going to “Benefits” > “Ancillary Benefits” > “View plan” in the STD insurance icon.

Policy termination

If your employment ends or your employer ceases to offer the benefit, your noncontributory short-term disability coverage will end on the last day of that month.

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.