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I receive long term disability (LTD) payments. The LTD policy allows me to work part time. The LTD disability payment I received monthly had an employee Federal Insurance Contributions Act (FICA) withholding.

As allowed by law, they passed the responsibility of employer FICA match to the company I was working for (which was the company that paid for my disability Policy). Recently my employer went out of business.

Does anyone know if another employer hires me, will that new employer (that did not pay for my policy) have to pay the FICA match on earning from the LTD? I asked the insurance company, but with the holidays they have not got back to me yet. What they say is what I will rely on. While waiting on their response, I'd appreciate feedback from this group.

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UPDATE: I contacted a tax accountant. He said the new employer will NOT have to pay the FICA match in this situation. I have no idea if he is right or not yet.

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    Is there any reason why you would distrust a tax accountant's opinion about this?
    – saritonin
    Dec 19, 2019 at 22:18
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If you have a new employer, they would be paying the FICA taxes on your new salary. I really don't see how they could be liable for taxes that they have nothing to do with.

According to multiple sources, FICA taxes only apply for the first 6 months of disability payments anyway (see links below).

It's really not your responsibility to worry about the employer match in general, so I would just wait until the insurance company gets back to you if you need a 100% confident answer.

https://ttlc.intuit.com/community/taxes/discussion/is-my-long-term-disability-income-from-ltd-insurance-subject-to-medicare-fica-taxes/00/757206

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

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