[rr2657]

Hello out there,

So my question is a little complex (or at least I think so).

After completing my undergraduate studies in 5/1999 I joined my prior employer (hereafter referred to as "Employer 1") under OPT. I promptly received my H-1B visa a few months later in 11/1999 and continued working at Employer 1 until 7/2006. Note that I received my green card in the interim period, in 7/2005. Anyway, I left Employer 1 and joined my current employer ("Employer 2") in 7/2006.

So here's the complicated part: apparently neither Employer 1 or 2 have been taking out FICA from my paychecks - since 1999! I was informed by a tax consultant (at H&R Block) that my 2008 W2 didn't have any deductions for FICA, so I immediately checked all prior W2 forms, and, sure enough, I have never paid this tax (yes, I am an idiot and didn't realize that FICA is something that most of us MUST pay - go figure).

I immediately contacted the Payroll Department of my current employer to address this (I obviously don't want to upset my current employer) and they are making the necessary adjustments, however, they are only willing to adjust for one year retroactively (ie, 2008).

My questions then, are as follows:

1) Why is my current employer adamant that they will only adjust for one year (ie, 2008)? How do I handle 2007 (and the few months of 2006 during which I worked for Employer 2)?

2) How do I handle the 1999 - 2006 period (during which I worked for Employer 1)? I have heard that it is the responsibility of the EMPLOYER to deduct FICA, rather than the Employee. Obviously Employer 1 registered me as working under OPT (as part of my F1 visa), so in their minds, I would be exempt from FICA (I've HEARD that OPT holders don't pay FICA, but I'm not sure). However, given that Employer 1 also handled my H1B process themselves (ie, they hired the lawyers, processed my passport and so on), shouldn't THEY have adjusted my status for payroll purposes once they knew I received the H1 visa? Heck, THEY took my passport for processing and, miraculously, it was returned to me with an H1 visa stamp (so I assumed everything was handled correctly).

3) Is it likely that I will have to pay my share of the entire 1999 - 2006 period? If so, will I have to pay heavy penalties and interest on the amounts owed? This could obviously be a very significant amount of money.

I should note that I have diligently filed my taxes on time every year. The fact that H&R Block missed the lack of FICA taxes EVERY YEAR is also something that I need to follow up on.

Bottom line, I want to do the right thing and stay "legal". I also plan on applying for citizenship next year, and don't want to give the immigration people any excuse to further scrutinize my application. I am sure the immigration folks wouldn't be too pleased if I have never paid FICA.

Apologies for the long post - any help would be GREATLY appreciated.

Thanks!

[MukatA]

If you are an employee, you can not pay FICA taxes directly; it must be through your employer. You can not do any thing.

If IRS contacts your employer, then the employers will contact your for back taxes. Then you must pay it.
Meanwhile make sure that you inform your employer that on H1-B you must pay FICA taxes.