Essay On Self-Insuring Short Term Disability

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When people experience illnesses or injuries, they may be unable to work for a while. Paid sick days can help, but they may not cover all the work days employees need to miss. This is why many employers offer short-term disability insurance. With this insurance, employees can receive a percentage of their regular salaries while they’re recovering. One option is to purchase short-term disability insurance through an insurance company. Employers pay a monthly premium for this insurance. If employees need to take short-term disability, the insurance company pays a percentage of their salaries. This isn’t the only option, though. Some companies choose to self-insure their short-term disability plans. Self-insuring involves setting aside a pool of money and drawing from it if employees become disabled. Is self-insurance the better option? …show more content…

Employees can receive a maximum of $543 per week through this program, depending on their incomes, according to the Government of Canada. After applying to the program, employees could need to wait as long as 28 days to receive their first payments. This is a long time. By offering self-insured short-disability, you can provide replacement income to your employees right away. This helps them focus on their recoveries rather than worrying about their finances. It also helps keep morale high at your company. That’s because other employees will see you’re looking after their sick or injured coworkers. Self-insuring short-term disability can help control your costs, too. When you go through an insurance company, you need to pay various fees. In some provinces, you may need to pay sales tax, too. These fees don’t need to be paid when you self-insure, since you’re handling the plan on your own. Disadvantages of Self-Insuring Short-Term

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