Sometimes employees can’t work because they get sick or injured outside their jobs. Knowing what qualifies for short-term disability is important because these situations can hurt both employees and their employers. Workers can lose their income, and businesses may struggle with productivity. In the worst cases, skilled employees might not return if they don’t get enough support. Short-term disability benefits can help solve these problems.

This guide clearly explains short-term disability insurance, what qualifies, and how to make a claim easily.

What is Short-Term Disability Insurance?

Short-term disability provides temporary income replacement when employees are unable to work due to illness, injury, or medical condition. It covers a percentage of lost wages, typically between 50% and 70% for a limited time, usually up to 26 weeks. This benefit helps employees manage their expenses while recovering, ensuring financial stability when they can’t earn their regular income.

How Does Short-Term Disability Work?

Employees working at least 20 hours per week can apply. Benefits generally cover 60% to 66.67% of weekly earnings, with a cap of $2,500 per week, depending on your plan. Payments usually begin after an elimination period (waiting period) of 7–14 days and last up to 26 weeks.

• Class 1: Full-time and part-time employees, excluding Vice Presidents and above, working at least 20 hours per week.
• Class 2: Full-time and part-time employees enrolled in the buy-up plan, excluding Vice Presidents and above, working at least 20 hours per week.

What Qualifies for Short-Term Disability?

Common qualifying reasons for short-term disability include:

• Serious illnesses like cancer, heart attacks, or strokes
• Physical injuries (like broken bones)
• Major surgeries
• Pregnancy and childbirth recovery
• Mental health conditions (with clear medical evidence).

What is NOT Covered by Short-Term Disability?

Short-term disability typically won’t cover situations like:

• Cosmetic surgeries
• Injuries from criminal activities
• Self-inflicted injuries
• Injuries occurring while incarcerated
• Injuries or illnesses directly related to your job (covered by workers’ compensation)

How Much Does Short-Term Disability Pay?

Short-term disability benefits usually pay between 50% and 80% of your regular income, depending on your specific policy. There’s often a maximum weekly limit, typically around $2,500. This ensures you have enough financial support during your recovery without worrying about losing your income completely.

If you earn $1,000 per week and your plan covers 60%, you’d receive, $600 per week in disability benefits

How Long Can You Receive Short-Term Disability Benefits?

It’s important to know how does short term disability work to understand how long benefits last. Usually, short-term disability (STD) covers the first three to six months of being unable to work. The exact time depends on the insurance policy and the type of disability.

How long it takes to recover from a medical condition is key. Some disabilities might heal quickly, while others take longer. Insurance plans have set times for different conditions to help financially support employees while they recover.

If a condition lasts longer than STD benefits, you might switch to long-term disability (LTD). LTD benefits start after STD ends and can replace about 50-70% of your salary. Employers must follow laws like the ADA and FMLA to help employees return to work or make necessary changes.

Disability Duration	Benefits Coverage Period
Short-Term Disability (STD)	3-6 months
Long-Term Disability (LTD)	Years or until retirement

Is Disability Income Taxable?

Disability income might be taxable based on who pays the insurance premiums. If your employer covers the cost of the insurance, your disability benefits usually become taxable income. However, if you pay the premiums yourself using after-tax dollars, your disability benefits typically aren’t taxed. Understanding this can help you better plan your finances.

For a clearer picture of how disability income fits into your overall tax plan, consider speaking with a financial expert, JC Castle Accounting is Here to Help.

Benefits of Short-Term Disability Insurance

Short-term disability insurance offers many benefits. It helps with lost wages when you can’t work. This support covers medical costs and daily expenses. It also helps you get back to work faster. This reduces stress from health issues. It makes an employer’s benefits package more attractive.

Offering this insurance shows you care about your employees’ well-being. It creates a supportive work environment.

Can You Work While on Short-Term Disability?

Many employees wonder if they can work while receiving short-term disability benefits. The answer depends on your policy and employer’s rules. Some policies allow you to work part-time, though your benefits might be reduced based on your earnings. If you’re asking yourself, “Will I lose my disability if I work part-time?”. you usually won’t, but adjustments might be made. Always check with your employer or insurance provider to avoid unexpected issues.

How to Apply for Short-Term Disability

Applying for short-term disability involves clear steps:

1. Notify your employer as soon as possible.
2. File your claim quickly to avoid delays.
3. Provide complete medical documentation from your doctor.

Reasons Short-Term Disability Can Be Denied

Your claim could be denied due to:

• Incomplete medical records or insufficient medical proof.
• Pre-existing conditions not covered by the policy.
• Policy exclusions such as injuries from criminal activities.

If denied, you can appeal by providing additional medical evidence or consulting a disability claims expert.

What Conditions Automatically Qualify You for Disability?

The Social Security Administration (SSA) has a list of medical conditions that qualify. These conditions are usually very severe. The SSA says you need a condition that keeps you from working for at least 12 months or leads to death to get benefits. For example, the Compassionate Allowances Program includes severe illnesses like cancer, ALS, and rare genetic disorders. These are so severe they clearly meet SSA’s standards.

The SSA uses a Five-Step process to check if you qualify for disability benefits. They look at how severe your condition is and if it affects your ability to work. If your condition makes it hard to do basic work tasks, it’s considered severe. They also check if you can do other jobs based on your age, education, and skills.

Even if your condition isn’t on the list, a mix of conditions can qualify you if they’re severe enough. Applying under these conditions can make the approval process faster. To get SSDI, you must have a disability that stops you from working, with a limit of $1,620 per month in 2025.

There are two main programs for disabled individuals: SSDI and SSI. SSDI requires work credits, and the number needed depends on your age. SSI has income and resource limits.

Applicants should gather all medical records to support their claim. This evidence is key to meeting SSA’s criteria. Missing deadlines or incomplete records can lead to denials.

If your claim is denied, understanding why is important. The condition and medical documentation are critical. It’s wise to get help from experts who know SSA’s rules.

FAQ

What is the difference between short-term disability and FMLA?

Short-term disability provides financial benefits when you’re unable to work due to illness or injury. In contrast, the Family and Medical Leave Act (FMLA) allows eligible employees up to 12 weeks of unpaid leave while protecting their job.

What qualifies for short-term disability?

Common qualifying reasons include serious illnesses, injuries, major surgeries, pregnancy and childbirth recovery, and certain mental health conditions with clear medical evidence.

Can employees quit while on disability?

Yes, employees can quit their job while receiving disability benefits. However, quitting may affect your eligibility for continued benefits, so it’s important to discuss this decision with your employer or benefits provider first.

Who pays health insurance while on short-term disability?

Usually, your employer continues paying your health insurance during short-term disability. However, policies can vary, so check with your HR department to confirm who covers these costs.

How do I ask my doctor for short-term disability?

When asking your doctor about short-term disability, be clear about your symptoms and limitations. Request that they document your condition and clearly state that you cannot perform your work duties, specifying the duration if possible.

Will I lose my disability if I work part-time?

You typically won’t lose all your disability benefits if you work part-time, but your benefits may be adjusted based on your earnings. Always verify your specific policy rules with your provider.

Can you work while on short-term disability?

Some policies allow part-time work while on short-term disability. However, your benefits may be reduced depending on your earnings. Check with your insurance provider or employer before starting any work.