Hi,

My bonus was 5k with net pay of $2872.50, paid in 2007. I have to return $5k back to the company now since I am leaving before completing 1 year.

I do understand that federal tax can be refunded by following the steps listed in Publication 525. Is there a way to also reclaim the social security and medicare tax that was withheld?

Thanks!

Your employer has to amend their Form 941 to claim a refund on the taxes THEY paid. Once they get the refund, they should then refund your share of the Social Security and Medicare taxes.

Thanks Atlanta Tax Expert! I appreciate it.

Yes, the best option is that the employer adjusts your FICA taxes. If this is not done, then you will need to file Form 843, which is filed separately.