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LTD Benefit Payments
Do I have to pay FICA tax on LTD benefit payments (from employer paid insurance) after 6 months from stopping work?
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January 21, 2026
8:31 AM
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Get your taxes done using TurboTax
No, long-term disability insurance payments which you receive after 6 months' absence from work are not subject to Social security, Medicare and Futa taxes, if they are paid to you more than 6 calendar months after the last month in which you worked.
Please refer to IRS Pub 15-A, Page 17.
The publication also shows two great examples supporting your situation.
January 21, 2026
4:42 PM