Disability
Disability insurance provides financial protection if you’re unable to work due to illness or injury. It replaces a portion of your income, helping you manage everyday expenses and maintain stability while you recover. Short Term Disability (STD) typically covers temporary conditions, while Long Term Disability (LTD) offers extended support for more serious or long-lasting health issues. This coverage offers peace of mind, ensuring you’ll still receive a steady income if the unexpected happens.
Because Five9 pays the premiums, if you become disabled, any approved benefits payable to you are considered Taxable Income.
To change the taxable nature of your STD and/or LTD benefit, you have the option to make an election to pay taxes on the STD/LTD premium (instead of the paid disability benefits) that is paid on your behalf by Five9. Five9 offers a ‘Tax Choice’ for disability benefits:
Elect Tax Choice: The premium Five9 pays is included in your taxable income, you pay tax on this taxable income. If you become disabled, there would be no taxes payable on the paid benefits you receive.
Decline Tax Choice: The premium Five9 pays on your behalf will be non-taxable. However, if you become disabled, the paid benefits you receive are taxable. Elections are made independently; you do not have to have the same Tax Choice for both STD and LTD. You will have the opportunity to elect your tax choice during New Hire Enrollment and during an Open Enrollment period.
Short Term Disability (STD)
- You are eligible to receive STD benefits after you have been disabled for 7 days due to a non-work-related illness or injury.
- Replaces up to 60% of your eligible income, up to a maximum of $2,500 per week.
- Benefits end after 12 weeks
Long Term Disability (LTD)
- You are eligible to receive LTD benefits after 90 days of disability
- Replaces up to 60% of your eligible income, up to a maximum of $10,000 per month until you recover or reach your Social Security Normal Retirement Age, whichever is sooner.