How much does short-term disability insurance pay in the event of a valid claim? The answer is different for every person and policy.
Every program considers at least three key factors to establish the payment amount and length.
Learn how the program’s specific factors affect your payout and their definitions.
Enter accurate details into our payout calculator to estimate your short-term disability benefit before taxes.
Disclaimer: only your insurance provider can determine claim amounts.
Short-Term Disability Calculator
Use our short-term disability payout calculator to estimate the total benefits you might receive. Get a quick result to help with budgeting.
How To Use
Below are instructions on how to use our short-term disability payout calculator. Reviewing the section below about the critical factors is the first step.
Once you understand these concepts, the remaining steps should be self-evident. Choose the closest option for the three crucial policy features from the dropdown box.
- Input the elimination period: 7, 14, 30, 60, or 90 days
- Input your monthly benefit: $1,000 up to $6,500
- Input the benefit period: 3, 6, 12 or 24 months
Finally, enter the anticipated duration of your absence from work due to a covered medical condition. This estimate will help you determine if your benefits will sustain you until you can return to employment.
Once you’ve entered all the required information, click the “Update Estimate” button to generate your calculation.
Tax Implications
Tax considerations significantly affect the net amount of short-term disability benefits you may receive. Please note that our calculator does not estimate potential taxes owed to the IRS.
Short-term disability benefits may be subject to income tax. Depending on how the premiums were paid, the insurance company or state program may withhold taxes from your benefit payments and issue a 1099 form to you in February.
Here’s a quick reference for the taxability of benefits based on the premium payment method:
- Benefits are not taxed with after-tax payments
- Benefits are taxable with pre-tax payment and employer-funded premiums
Keep these considerations in mind when estimating your net benefit amount.
Pay Limitations
While a short-term disability calculator can provide a rough estimate of potential payments, it has inherent limitations. The most reliable method is to file a claim form with the entity that administers your policy.
The calculator is unable to perform several vital functions:
- Assess the validity of your claim for benefits.
- Predict the duration of your absence from work due to disability.
- Account for the specific terms and conditions of every insurance policy.
- Generate accurate estimates if provided with incorrect data.
Please be aware of these limitations when using the calculator and understand that it serves as a preliminary tool rather than a definitive source of information.
Factors Affecting STD Payout
Review your insurance policy or state coverage details for precise benefit calculations. Several factors in each insurance policy or state program affect the total benefit amount, and everyone’s situation is unique.
- Individuals often choose policy features based on how they affect premium costs during private coverage enrollment.
- Each state’s temporary disability program offers similar benefits, but the specifics can vary from one state to another.
Elimination Period
The first factor in a short-term disability policy is the elimination period, also known as the waiting period, which is the time you must be out of work before receiving payments.
State Elimination Periods
The delay before your benefits begin can affect the total amount you get. If you cannot work for four weeks and your state has a mandated disability program, this is especially relevant.
| State | Elimination Period (Days) | Days Without Pay |
| California | 7 | 7 |
| Hawaii | 7 | 7 |
| Massachusetts | 7 | 7 |
| New Jersey | 0 or 7* | 0 |
| New York | 7 | 7 |
| Rhode Island | 7 | 7 |
| Washington | 7 | 7 |
* The waiting period applies to workers who can return to work within three weeks.
Private Elimination Periods
Private insurance policies vary in their waiting times before benefits start. Check your coverage summary to determine whether you selected a waiting period of 0, 7, 14, 30, 60, or 180 days during sign-up.
Benefits that start more quickly have higher premium costs. A person could have selected a longer elimination period to keep expenses affordable when signing up.
When signing up for private insurance, you can set different waiting periods for receiving benefits depending on the type of medical event, such as accidents or illnesses. For example, you might have selected different elimination periods for each scenario.
The following table illustrates the possible choices for elimination periods, with the number of days you would wait for benefits to start after an accident compared to a sickness.
| Accident (Days) | Sickness (Days) |
|---|---|
| 0 | 7 |
| 7 | 7 |
| 0 | 14 |
| 14 | 14 |
| 0 | 30 |
| 30 | 30 |
Benefit Amount
The benefit amount you receive from a short-term disability policy is the third key factor. The pay percentage of your income determines the amount that the policy covers up to a specified maximum benefit limit.
- Pay Percentage: typically ranges from a small percentage up to a maximum of 90% of your income.
- Benefit Maximum: the weekly benefit amount is capped and can vary from $170 to $1,500, depending on your coverage.
State Amount
Each state sets unique rules for the percentage of earnings limit and the maximum weekly amount. For example, consider the following limits if you work in a state with a mandatory program and earn $1,000 each week or $52,000 a year.
| State | Max% | Weekly Limit* | Actual % |
| California | 70% | $1,620 | 70% |
| Hawaii | 58% | $765 | 58% |
| Massachusetts | 80% | $1,150 | 80% |
| New Jersey | 85% | $1,055 | 85% |
| New York | 50% | $170 | 17% |
| Rhode Island | 60% | $1,043 | 60% |
| Washington | 90% | $1,456 | 83% |
*The weekly limit figures update annually and may be higher.
Most states verify income when covered individuals file claims. States usually calculate earnings based on a base period, typically the last four or five completed quarters. To get an accurate estimate, check your earnings for the base period with your state’s guidelines.
Private Amount
Insurance companies set varying income percentage limits and maximum weekly amounts for private policies. Each insurance company has its own set of rules. Buyers then choose the level of protection they can afford based on these rules.
For instance, an insurance company might offer employees a benefit of up to 70% of their income, with the replacement capped at $7,500 per month. Issuing companies check income at the time of policy purchase. Once sold, the monthly benefit amount is fixed and does not change.
Higher benefit amounts have more expensive premiums. A person might insure a smaller portion of their earnings to reduce their premium payments.
Benefit Duration
The duration of the short-term disability benefit, which is a vital aspect of the policy, is the third factor to consider. The amount of money you could receive also depends on how long the policy covers you when you cannot work.
State Duration
The benefit period becomes relevant when your disability extends beyond the policy’s maximum coverage duration. For example, imagine you are unable to work for eighteen months and live in a state that has a mandatory disability program.
| State | Benefit Period (Weeks) | Weeks After Benefits End |
| California | 52 | 26 |
| Hawaii | 26 | 52 |
| Massachusetts | 20 | 58 |
| New Jersey | 26 | 52 |
| New York | 26 | 52 |
| Rhode Island | 30 | 48 |
| Washington | 12 | 66 |
Private Duration
Private short-term disability policies can have different benefit periods. Check the outline of coverage in your policy. Look for the benefit period you selected upon enrollment—3, 6, 12, or 24 months.
More extended benefit periods have higher premium costs. A person could have opted for a shorter duration to keep expenses manageable.
