Browse health, insurance and disability deduction codes.
LTD normally refers to long-term disability cover. A premium funds cover; a benefit replaces part of earnings during an eligible disability. Who paid the premiums and whether they were paid before or after tax can affect the later benefit’s tax treatment.
Related spellings covered here: LTD.
How to read this entry
Use the meaning Long-term disability insurance 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
A $15 employee LTD deduction is a premium, not $15 of disability income. A separate LTD ER $20 amount can show the employer’s contribution without reducing take-home pay.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Identify premium versus benefit, employee versus employer funding, and pre-tax versus after-tax premium treatment. Review the policy for waiting periods and replacement percentages.
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.