Payroll Tax on Illinois Officers’ Disability Pay Ruled Legal (1)

Disability income of injured police officers isn’t shielded from employment tax withholding under Illinois law, the state’s Supreme Court ruled.

The justices unanimously rejected two officers’ claims against the City of Pekin, finding that the state’s Public Employee Disability Act doesn’t mention tax withholding and the officers’ suggestion that federal tax law makes their disability income exempt is a claim better addressed by requesting an Internal Revenue Service refund.

The court also disagreed with the officers’ argument that reading the plain language of the Illinois statute to allow tax withholdings would yield an absurd result.

“This makes the employee’s tax ...