Is my Long-Term Disability income (from LTD Insurance) subject to Medicare/FICA taxes?

[SweetieJean · Accepted solution]

FICA taxes apply to the full amount of the disability payment for the first six calendar months after the employee has ceased performing services for the employer. Disability payments will be exempt from FICA starting in the seventh calendar month after the employee has stopped performing services for the employer. 

The LTD insurer should have deducted those from your benefits.

https://www.irs.gov/pub/irs-wd/11-0065.pdf

[717s7e]

Neil,

I understand that if my employer paid the group Disability Income premiums, I am fully taxed on the benefits, both FICA and income tax.

So, does the 6 month FICA payment only apply if I paid the Disability Income premium - thus benefits aren't taxed??  Why do I owe a 6 month FICA payment in that situation?  Or, do I miss something here?  Thanks!!

[MaryK4]

Unfortunately, the FICA applies to the short-term disability insurance payments for the first six months regardless of who paid the premiums- this is separate from the income tax which looks at who paid the premiums.  They are considered "Wages".  See 26 U.S. Code § 3121(a)(4).

@717s7e