What does State Disability Plan mean? Read on to discover the definition & meaning of the term State Disability Plan - to help you better understand the language used in insurance policies.
State Disability Plan
A state disability plan is a state-implemented insurance plan that financially supports employees who incur an injury or disability and become unable to work. In other words, it is simply disability insurance provided by the state. As for the funding for these benefits, certain states require both employee and employer contributions. Employees would pay the premiums through payroll taxes. As of 2015, the Commonwealth of Puerto Rico, Rhode Island, New York, New Jersey, California, and Hawaii provide state disability plans.
We hope the you have a better understanding of the meaning of State Disability Plan.