You mentioned to me that sick pay was taxable unless the person paid for the sick pay policy.

Her HR person is stating the following:
– I believe the sick pay, although taxable, can be put (up to a certain dollar amount) directly to your AXA NQ account (457 plan) by the township and taxes will be due upon withdrawal from that account.

Is the above correct (since she doesn’t take possesion of the money) and if so how much can the township deposit without any taxes?

or

Is she taxed no matter how the sick pay is paid out or transferred or deposited (she didn’t pay for the policy)?

Thank you,
Douglas