Payment & Taxation
After the first 14 days of onset of the disabling condition and upon approval from the Lincoln Financial Group, you will be eligible to start receiving disability benefits. Lincoln Financial Group will determine the duration of your benefits based on the nature of your condition and information supplied by your treating physician.
Taxation of Benefits
Disability benefit payments are subject to federal income tax. Concordia Plan Services is not required to nor does it withhold federal income tax from a lay worker’s disability payments unless the worker has provided CPS with a completed Federal W-4S, Request for Federal Income Tax Withholding from Sick Pay form. This form is available from Concordia Plan Services or the IRS website.
Rostered Ordained / Commissioned Ministers
Disability benefits paid are designated as “housing allowance.” This means that a disabled minister can exclude up to 100% of the disability benefits received from federal taxable income, to the extent that it is used to rent or provide a home.
Disability benefits received during the first six months following the last calendar month worked are subject to Social Security and Medicare taxes.