Short Term Disability

tig594

Hello, all. 

I just found out the company that paid my STD last year when I was on maternity leave (Northwestern Mutual) didn't take out any federal or state taxes.  Is this customary?  Shouldn't they tell you they aren't taking taxes out?  After having a baby this is the last thing you're thinking about.  My check stubs from them didn't list any deductions at all but they did deduct for social security and medicare.  I'm slightly annoyed by this as it takes a huge chunk out of my refund for last year.  

MommyAtty

Mine does the same. Luckily they did warn me, but it came as an off-hand comment. Not really part of the literature anywhere.

VitaLuna

Cigna was the company in my case and they only took out SS/Medicare as well. I'm not looking forward to filing taxes this year .

tig594

I called Northwestern last night and they said (of course) that it's your employers responsibility to give you a W4-S for them to take federal taxes out.  They will not do state.  

DaisyJanie

I was under the impression that most STD payouts are not taxable - it depends on whether they take out the premiums before or after taxes, but most employers do it after taxes?