Long Term Disability & Employer FICA

[Guest Carlos Rivera]

We have just engaged an outside provider to manager our long term disability program. They will manage the payments, FICA deductions and W2s to those on LTD. How does the employer wind up paying their portion of the FICA? We currently use ADP to manager our payroll.

[KIP KRAUS]

I assume that you have a disability-waiting period that is less than 6 months, because it is my understanding that LTD benefits are not FICA taxable after 6 moths of disability?

If your payments are subject to FICA then the third party payer is required to report disability payments to you and you are required to file your portion of FICA on a quarterly report like you do now.