sick pay

n.
Wages paid to an employee who is absent because of illness.

Payment to an employee to replace wages during the period when the employee is absent from work because of illness or personal injury. Sick pay is taxable income to the employee and includes payments made by any of the following:

1. Employer.

2. Welfare fund.

3. State sickness or disability fund.

4. Association of employers or employees.

5. An insurance company, if the employee paid for the plan.

Benefits received under an accident or health insurance policy on which the employer paid the premiums are not taxable.

Refers to compensation an employee receives while away from a job due to illness or injury. In general, when an employee receives payments as reimbursement for medical care or for permanent injury, such payments constitute an exclusion from gross income. If an employee receives wages or payments in lieu of wages under a disability plan provided by the employer, of which payments are made to the employee on account of permanent and total disability, a portion of such payment is not subject to income taxes. I.R.C. §104.

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The noun has one meaning:

Meaning #1: wages paid to an employee who is on sick leave

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