My husband was hurt at work March 2nd of this year. We just recently started receiving his checks. We thought they would hold one week or two back before the checks started coming in. The first check we received last week, was for the SECOND week he was out. Today we received TWO checks, one for the FIRST week he was out and the second for the third week. We know he's going to have to pay for the (lousy) insurance when he gets back to work but we're confused as to whether or not he's pay State or Federal taxes on it? If so, when does he pay them, now or next year when we file out taxes? Thanks so much to any help you can give us!!

We know he's going to have to pay for the (lousy) insurance when he gets back to work

He should not be paying anything for his WC.


but we're confused as to whether or not he's pay State or Federal taxes on it?

No, there should be no taxes on an insurance payment, which is what this is.

They sent us a form that says "Insurance Payment Election While on Leave" form. It gives the options to make the payments at the same time as if it was made by payroll, make payment at first of the month starting the next month or agree to have make-up deductions taken from payroll checks upon return from leave. It says that while he's on a leave of absence, his company will maintain his insurance benefits in accordance w/ COBRA. Then it says "you may elect to pay your portion of the premiums" w/ one of the ways I just mentioned. Technically they DON'T pay ANY portion of the insurance b/c the post office pays $3.12 an hour to the company and then the company pays the employees. (They're subcontracted from USPS.) So the post office pays the insurance difference and not the company but they're pretty much embezzling money from the post office and the employees.
(And my husband's originally from Searsport, Maine!!!)

If he's on FMLA, the employer has to maintain his medical insurance coverage, but they may require him to pay for it and may cancel it upon 15 days' notice if the payment is more than 30 days late. Once FMLA is exhausted, if he cannot return to work and he did not keep up the premiums while on leave, the employer CAN (although not all do) require him to make up both his share and the employer's share).

Maintenance of Health Benefits
A covered employer is required to maintain group health insurance coverage, including family coverage, for an employee on FMLA leave on the same terms as if the employee continued to work.

Where appropriate, arrangements will need to be made for employees taking unpaid FMLA leave to pay their share of health insurance premiums. For example, if the group health plan involves co-payments by the employer and the employee, an employee on unpaid FMLA leave must make arrangements to pay his or her normal portion of the insurance premiums to maintain insurance coverage, as must the employer. Such payments may be made under any arrangement voluntarily agreed to by the employer and employee.

An employer's obligation to maintain health benefits under FMLA stops if and when an employee informs the employer of an intent not to return to work at the end of the leave period, or if the employee fails to return to work when the FMLA leave entitlement is exhausted. The employer's obligation also stops if the employee's premium payment is more than 30 days late and the employer has given the employee written notice at least 15 days in advance advising that coverage will cease if payment is not received.

In some circumstances, the employer may recover premiums it paid to maintain health insurance coverage for an employee who fails to return to work from FMLA leave.

http://www.dol.gov/esa/regs/compliance/whd/1421.htm#2i

Okay, so I guess we're stuck w/ the insurance payments but at least there's no taxes. Thank you!!