Let us show you ways to Self Fund Short-Term Disability for your Employees.
Short-Term Disability is the most requested benefit by employees. Setting up a self-funded short-term disability plan provides an economical way for your employees to be protected and feel secure. 


Providing disability coverage as part of a group benefit plan can help protect employees against the financial impact of being unable to earn an income due to injury or illness. All too often, small businesses count on sickness benefits from employment insurance (EI) to carry their employees through a period of disability. These EI compensations often do not suffice or match the income needed for the employee to be sustainable. Contact Puhl Employee Benefits for more information about Short-Term Disability Plans and Group Short-Disability insurance.


There are numerous advantages associated with a group Short-Term Disability coverage plan. Outside of providing employee empowerment and safety short-term disability plans:

  1. Ensures business owners are covered
  2. Flexible benefit rates are available. The most popular rate is 2/3 or 67% of the employee’s pre-disability income.
  3. If the short-term disability premium is paid by the employee, the benefit is non-taxable.
  4. Benefits are capped at $5,000/week for groups with five or more employees.
  5. Depending on the option selected, it is possible to have a zero-day waiting period.
  6. Flexible benefit period options are available, such as 15, 17, 26 or 52 weeks.
  7. Short-term disability coverage is provided from the first day of becoming an eligible plan member.


There are numerous dangers associated with relying solely on Employment Insurance for your employees. Workplace accidents and employee participant accidents can both result in disability leaves. These dangers include but are not limited to the following EI disadvantages:

  1. Some small business owners may have to wait 12 months from the date of confirmed resignation with Canada Employment Insurance Commission before qualifying for EI sickness benefits; they may also be subject to other requirements.
  2. The EI benefit rate is 55% of employee’s pre-disability income.
  3. Benefits are taxable.
  4. The waiting period before benefits are payable is 2 weeks.
  5. EI benefits are capped at $514/week.
  6. EI sickness benefits are payable for a max of 15 weeks.
  7. To be entitled to EI benefits, an employee’s regular weekly earnings must have decreased by more than 40%; an employee must also have accumulated 600 insured hours in the last year.


  • Short-Term Disability pays on the first day of accident & 7th-day sickness for 4 months.
  • Income is paid to the employee when needed most.
  • 2/3 of gross income is the calculation to your employers design.
  • Weekly benefit maximum to your employers design.
  • Employee’s doctor determines disability.
  • Claim adjudication is fast & efficient.
  • Claim payments are faster to the employee.
  • Long Term Disability is designed to start the day Short Term Disability is completed.
  • Controlled cost.
  • Short-term disability is paid by the employees with after-tax earnings.
  • Short-term disability benefits are non-taxable, when employees pay 100% of premiums.
  • Employees can enhance their benefits plan with no additional employer contributions.
  • Check with your employer for your plan design.


  • Employee or employer paid.
  • No nominal value.
  • Employees pay premiums into the plan held by the employer. If the employee leaves, the funds stay in the plan.
  • Claim adjudication is fast, efficient and is handled by us for a flat $250 per claim.
  • Rates can be adjusted annually by claims experience.
  • Flexible adjudication claim control, cost control, and faster claim payments to the employee provides the reason to use a self-funded Short-Term Disability Plan.
  • Adding coverage helps an employer improve employee satisfaction and morale, increasing productivity by providing financial security.
  • Enhancing a benefits plan with short-term disability can help employers maintain a competitive edge in attracting and retaining employees.