Disability W-2 confusion

[timefortax]

What is the name of your state (only U.S. law)? MA
I have a client with a W-2 from an insurance company. It shows the disability income in Box 12, Code J, which is non-taxable and understood. However, there is a smaller amount in boxes 1,3, and 5 (wages) that is taxable with no withholding whatsoever. What would cause the insurance company to report some of the payments as taxable wages? Thanks.

 

[tranquility]

What is the name of your state (only U.S. law)? MA
I have a client with a W-2 from an insurance company. It shows the disability income in Box 12, Code J, which is non-taxable and understood. However, there is a smaller amount in boxes 1,3, and 5 (wages) that is taxable with no withholding whatsoever. What would cause the insurance company to report some of the payments as taxable wages? Thanks.

Who paid for the disability insurance?