I get my H-1B visa last winter but after few mounths i notice that Payroll department did not deduct SS and Medicare from my wages.
I talk to them and they started to deduct these taxes but after May 2005.
Do I own SS and Medicare to IRS?
DO I have to pay to my payroll dapartment dept. the difference?
I did not pay SS and Med.care on about 15K.
What is your advice?
To go straight to the PAYROLL and explain them....or to wait next tax year and IF IRS sendme a letter for these taxes to pay them.....but not earlier?

I was not very famylier with US taxation system before...

Thank you very much

AtlantaTaxExpert

Troj:

It is your employer's responsibility to collect Social Security and Medicare taxes.

If they fail to do so (especially after you informed them that you were liable for these taxes), then the IRS will hold them responsible, not you. If you have informed your payroll department of the situation, then you have done all that you are legally required to do.

I recommend that you do nothing else unless the payroll comes back to you and asks for the back taxes.

troj

I told them that I am liable for SS and medicare after I undernstand that.
Before that my Payroll asked me and I told them i do not have to pay SS and Medicare.
So now...How to explain them the mistake?
Is it their responsibelity?

AtlantaTaxExpert

Troj:

If you have notified them in writing that you believe you are liable for Social Security and Medicare taxes, you have met your legal responsibilty. If they continue to fail to withhold these taxes, you have nothing to worry about.

Now, if you want to be safe, you can put aside the taxes (7.65% of your salary) and save it in the bank in case your employer comes back and ask for the money (they can do that until 15 Jan 2006).