My brother-in-law started on disability this year. Payments are from an insurer, whose premiums were paid by his employer. He and my sister say there is no indication of withholding (tax or FICA) accompanying these payments. Their calls to HR and the insurer have not clarified anything. (Where the fault for this lies, I cannot say.)
Assuming there was no withholding, he obviously owes income tax on the payments; but (AIUI), the underpayment penalty can be waived for his situation. For next year, he will need to either set up withholding or make estimated tax payments.
... Which leaves FICA. (AIUI, this is owed for (only) the first 6 months of disability payments.)
Q1: Is it plausible that the insurer/employer has not done FICA withholding on these payments?
Q2: Is the company responsible for the employer portion of FICA during disabilty?
Q3: When he files his 1040(A), how would he report the FICA he owes?
... Or should he just wait for his W2/1099, and all will be made clear?
Thanks you.