I assume that the six month mark has passed. Contact your LTD company to make sure.
FICA is withheld from disability benefits paid during the first full six months following the last day the claimant worked for the policyholder immediately prior to the period of disability. IRS Publication 15A page 20 states:
Payments received after 6 months
The payments received by Dave in July through October aren't subject to social security, Medicare, or FUTA taxes because they were received more than 6 months after the last month in which Dave worked.
FICA taxes are reported on IRS form 941 Employers Quarter Federal Tax Return.
Federal withholding is withholding for income tax reported on your Federal 1040 tax return. There is no downside to increasing your withholding if you choose that option. If you increase your Federal withholding, the additional withholding will be returned to you by a larger refund in 2024.
@ARC371
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