Why was no FICA withheld? Why did FICA withholding stop?
We are required to withhold FICA taxes for the first full six-month period following the last day the claimant worked for the policyholder. If Assurant Employee Benefits’ first payment is made after the conclusion of this six-month period, FICA taxes will not be withheld. Payments made within this six-month period will be subject to FICA. Any payments made after this six-month period will not be subject to FICA, unless the claimant returns to work for the policyholder in any capacity. IRC regulations require FICA withholding from benefit payments (no matter what period the benefits are for) issued within the first full six months following the last day worked for the policyholder. However, once this six-month period has ended, no FICA is withheld from benefits paid unless the claimant returns to work for the policyholder in any capacity.
