STD and pretax health care

[Kris]

I have an employee out on STD. He is being paid through our 3rd party provider, not through our payroll company. He is paying his pretax medical deduction via check to the company. Are fica taxes owed back to the employee since there are no wages to take this deduction from and this is a pretax deduction?

[rr_sphr]

I am not sure what you mean by "owed back".

In the end the STD 3rd party provider should be sending payroll/the employer the taxable wages (since the premiums were withheld pretax) and the employer/payroll should be paying FICA on those amounts. To make this NOT required, the STD premiums would need to be deducted after-taxes such that the benefit is not-taxable when used.

Here's just one process from one insurance company: http://per.lacity.org/Bens/Taxation%204450_2.pdf