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PA State income tax and sick pay vs sick leave

My question is the ordinary sick time that I get as an EXEMPT employee taxable income under PA STATE income tax?

Here is an exact copy of the wording in the PA-40 instructions for items NOT subject to income :

INCOME NOT TAXABLE FOR PA PIT PURPOSES: ... "Sick pay and disability benefits, including payments by third party insurers for sickness or disability (does not include amounts paid as sick leave)" ...

Clear as mud to me... what is the distinction between "sick pay" and sick leave"?

For example, if I have a cold and take off Friday and get paid for the day, will that pay be subject to PA income tax?

thanks Mark

Reply to
Mark
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What does your W2 show? That often answers the question.

While I don't know exactly what PA does, here's a general answer that may help. At my last job, after a certain number of days off (maybe

10) due to illness which I charged against my sick-leave time, a short- term disability benefit (maybe up to 90 days; I don't remember because neither I nor any subordinates ever had to use it) kicked in that paid me 80% of my salary.

I would guess in this case, the first 10 days would be taxable wages, while what I got after that, under the short-term disability benefit, would be tax free. And as I said in my first sentence, one would probably show up as part of the wages reported on a W2 while the other wouldn't.

Reply to
Stan K

The disability payments would NOT be tax free if the employer paid the premiums without adding that amount to the employees' taxable wages.

Reply to
Bill Brown

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