I think we all would agree it is very difficult to pay your living expenses without a regular paycheck. Most employees can’t go more then about a week before they get behind in their bills.
Short Term Disability is a critical benefit for an employer to offer their employees, either paid by the employer or offered as a voluntary benefit. These plans typically pay 60% of an employees gross weekly earnings for a period of 13 or 26 weeks.
Keep in mind that if the employer pays the premium for these plans or the employee is paying the premiums on a pre-tax basis through a section 125 cafeteria plan, the benefits are income taxable thus reducing the income benefit even further.
Voluntary employee paid STD is a tax free benefit if premiums are paid on an after tax basis.
The majority of STD claims last less then 13 weeks in duration and claims are usually paid out on a weekly basis to the disabled employee.