FICA Taxes on NYS Disability
I just started at a new company in payroll and was reviewing their 3rd party sick pay for NYS Disability checks cut in the last few months. I noticed that they are only taxing a portion of the disability amount for SS & Medicare and when I asked the insurance carrier, they said that it is being taxed at 42% per capita. I have never seen it done like this before and I'm really struggling to find anything on the IRS or NYS website regarding the taxation or if it does say something the wording it throwing me off. The employee does contribute the full $0.60 NYS premium. Has anyone ever seen it calculated in this way before?