Add Comment Question: I’m am receiving Long Term Disability from a group plan at work. The cost of premiums for the plan are split between the employee (30%) and the Employer (70%). Being that the income is taxable, do you only have to pay the tax on 70% since you paid 30% of the premium? Answer: No the entire amount is taxable income if the employer contributed to the premiums. Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.