LTD payments subject to FICA?

[Guest DLevine]

An employee has begun to receive LTD payments. The premiums were paid by the Employer. Are the payments subject to FICA?

Thanks.

[KIP KRAUS]

It is my understanding that any LTD benefits paid during the first 6 months of a total disability are subject to FICA witholding. After the 6 months they do not apply. Therefore if the LTD plan has a 6 month waiting period before payments begin then FICA wouldn't apply. However, if benefits begin say after 3 months of disability then FICA would apply for the next 3 months of payments.

Your LTD insurer can confirm this.