Does Employer Pay Disability Insurance? 
Yes , there are group disability plans that an employer will pay the premiums as an employee benefit . The upside is the employees are receiving a free benefit as a perk of working for the company . The down side of group disability plans are they are tax deductible for the employer , therefore if the employee draws benefits these are subject to income tax . If you purchase your own disability insurance plan with after tax premiums your benefits are tax free . 