Handling medical, dental, and vision deductions while an employee is on STD or LTD is completely dependent on the company-wide policy. If the employee is collecting a benefit from their disability policy they do not have to pay their disability premiums, but their medical, dental, and vision premiums are still subject to be collected. There are four options below on how companies can decide to collect premiums while an employee is on leave. Please note, whichever option is selected is required to be a company-wide policy and cannot be changed on an individual basis. (I.e. all employees who are out on disability will have their medical, dental, and vision premiums collected the same way.)
Options for handling deductions while employees are on disability (STD or LTD):
- The employee can pay the deduction amount upfront before going on their STD/LTD.
- The employee can pay during the STD/LTD (if they are still getting paid).
- The employee can provide a check to the company during leave if it is unpaid.
- The employee can pay the amount in bulk or via catch up deductions when they return to work.