STD and LTD at our company are paid by the employer. We impute all of the premiums so that the employees will receive their payouts tax free.
We have an employee who received a payout. Guardian sent us the quarterly statement, showing they withheld and remitted employee FICA only. They do not issue W2s for this, nor do they report/pay the employer portion.
When I input the amount into Rippling to process for reporting and remitting the payment, it now shows as taxable income to the employee in Box 1 on their W2 preview. Guardian has confirmed to us they have us on a gross up/imputed income plan but the earnings are still subject to FiCA regardless.
Is this correct and accurate? I have a support ticket to Rippling but wondering if others have experience around this.