Sick Pay

Sick Pay

The Sick Pay are.

payment to an employee to replace wages during the period when he or she is absent from work because of illness or personal injury. Sick pay is taxable income to the employee and includes payments made by any of the following:

• the employer.

• a welfare fund.

• a state sickness or disability fund.

• an association of employers or employees.

• an insurance company if the employee paid for the plan.

Benefits received under an accident or health insurance policy on which the employer paid the premiums are not taxable. Former IRC (check if this IRC provision is current here) §104.


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