Browse health, insurance and disability deduction codes.
LTD ER commonly labels an employer-paid long-term disability premium or contribution. ER usually means employer in this context. The displayed cost is normally informational rather than another deduction from employee take-home pay.
How to read this entry
Use the meaning Employer contribution towards long-term disability alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
With $2,000 cash wages, $300 employee taxes and $100 employee deductions, net pay is $1,600. A separate $18 LTD ER employer cost does not reduce it to $1,582 unless payroll identifies a different actual transaction.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Check the column and net-pay calculation. Employer-funded disability cover can affect taxation of later disability benefits; the premium label alone cannot settle every tax question.
Compare related entries
Read the health, insurance and disability deduction codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on health, insurance and disability deduction codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.