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    fsm_forever's Avatar
    fsm_forever Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jul 23, 2008, 11:36 AM
    Employer didn't contribute FICA taxes
    I work at a state college. When I was a student employee the college was not obligated to pay any FICA taxes. After I graduated I started working at the college as a full-time employee. Two years later the college admitted that there was a bug in their payroll system and that they had not been withholding any FICA taxes. They said I owed over $9000 to the government because of their mistake. They paid the taxes on my behalf and are now taking out money from each of my pay checks to reimburse themselves.

    Obviously, if they had not had the bug in their payroll system I would have ended up paying this money over the two years I worked with them. However, am I obligated to pay my portion still? I've recently received a new job offer with another company. If I leave am I obligated to keep paying them back?

    Any advice would be helpful,

    Thanks!
    danielnoahsmommy's Avatar
    danielnoahsmommy Posts: 2,506, Reputation: 297
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    #2

    Jul 23, 2008, 11:37 AM
    Contact a good attorney
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jul 24, 2008, 09:38 AM
    Normally, students who work for their university ON CAMPUS are NOT liable for FICA taxes.

    Contact the HR department have them check this out.
    fsm_forever's Avatar
    fsm_forever Posts: 3, Reputation: 1
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    #4

    Jul 24, 2008, 12:24 PM
    Quote Originally Posted by AtlantaTaxExpert
    Normally, students who work for their university ON CAMPUS are NOT liable for FICA taxes.

    Contact the HR department have them check this out.
    I think you misunderstood... I've worked full-time for a few years now at the college. They screwed up and didn't start contributing for FICA after I started working full-time.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Jul 25, 2008, 05:11 AM
    Does not matter if you were working full-time. If you were a student at the same university, normally students do NOT have to pay FICA taxes.
    fsm_forever's Avatar
    fsm_forever Posts: 3, Reputation: 1
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    #6

    Jul 25, 2008, 06:36 AM
    I think my original question is pretty clear. I GRADUATED. I am no longer a student and started working for the college full-time after GRADUATING. They didn't pay my FICA for the two years I worked for them as a full-time employee. I was NOT a student employee because I GRADUATED. I'm not trying to be rude, I'm just trying to be clear about my predicament.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #7

    Jul 25, 2008, 07:44 AM
    They are making amends for the fact that they screwed up by advancing the amount you owe and giving you the opportunity to reimburse them over time. I think that's fair. If you leave, then you will have to reimburse them for the balance they advanced. They may be willing to work out a payment schedule.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Jul 26, 2008, 10:13 AM
    While I agree with Scott on the fairness of how the university is addressing this issue, IRS procedures clearly state that employers CANNOT COLLECT the employee's portion of the FICA taxes once the tax year has closed.

    If FSM_Forever left his current position, his employer would have NO LEGAL MEANS to collect the debt.
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