Question: My company provides group-term life insurance with a value of more than $50,000 to some retirees. I know I have to report the uncollected employee FICA taxes on their W-2s in Box 12 with Codes M and N. Do we have to pay the employer share of these taxes? If so, when are they due? Also, how are the amounts reported on Form 941?
Answer: Yes, the employer must pay its share of FICA. The tax code allows employers a great deal of flexibility regarding when these taxes are due. Employers, for example, may treat the amounts due on a pay-period basis, or on a monthly or quarterly basis, provided the taxes are paid by the end of the calendar year. And employers don’t have to use the same time periods for all retirees. You report on the quarterly 941 for the quarter during which you consider the taxes paid.