Ask Experts Questions for FREE Help !
    shyl123's Avatar
    shyl123 Posts: 1, Reputation: 1
    New Member

    May 8, 2013, 11:30 AM
    employer is asking me to pay backdated social security and medicare taxes

    I have been working with my employer 'X' since Jan 2012 till now. I was on F1 visa from March 2011 till Oct 1st 2012 when my employer filed H1B for me. X did not withhold social security and medicare taxes from my wages until Apr 2013.

    I got H1B approval notice in Oct 2012 from HR and assumed that they would take care of notifying it to payroll. When I checked my W2 for 2012 and noticed that social security and medicare was not withheld, I notified HR in March 2013 that they should withhold medicare and social security taxes from my wages.

    I have already filed my taxes for 2012 and paid all the taxes that I owed. As I do not pass substantial presence test, I do not owe social security and medicare taxes for 2012 and I did not pay them.

    Now my employer is asking me to pay my part of taxes for 2012(from Oct to Dec). My HR also told me that it was a mistake from the side of HR that they failed to notify payroll. She also mentioned that they need to backdate this change.
    My question is, is it legal to ask me to pay backdated taxes? I don't want to pay the taxes that I don't even owe, and then file amended tax return to get it back from the IRS.

    What should I do?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member

    May 8, 2013, 11:32 AM
    I'm not sure it's anyone's responsibility to notify payroll other than yours. You owe the taxes, no question. Wny would you think paying them is not your responsibility?

    Of course, you could always refuse and see if you lose your job.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert

    May 8, 2013, 12:06 PM
    You are both at fault. You should have noticed that nothing was withheld and HR should have notified payroll. Go sit down in person and work it out. In the purely practical sense, you are the one who should also contact the IRS about not owing taxes for last year, because your employer can't do that. (You will probably be told to file an amended return though.)
    You can call the IRS... it's a frustrating experience because you have to go through successive levels of expertise, telling your story in detail to each person, before you get someone who actually knows anything.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307

    May 8, 2013, 12:33 PM
    First it is indeed your responsibility to pay the SS taxes that were not properly withheld. You can do this in one of two ways - either do as they suggest and have it withheld from your pay over the next month or too, or amend your 2012 income tax to report the underpayment of SS tax and write the IRS a check. If they withhold from your pay in 2013 the problem is that they will have to amend their reporting to the IRS so that the tax is credited against 2012 wages - I think that's what they meant by "back dating." They have to file an amended employer's return to correct the amount of SS they withheld from employees against 2012 wages and the amount they should have contributed, and most likely they will end up paying interest charges on this late payment. There are two reasons for amending the 2012 numbers: (1) so that you get credit with the SSA for SS taxes paid on 2012 wages (this can affect your benefit amounts down the road), and (2) so that it doesn't appear that they have withheld too much SS tax against your 2013 wages. They should issue you a corrected W2 for 2012, but you will not have to file an amended return for 2012 as long as the amount of federal wages reported is the same as on your original W2, as it should be - the only change would be that the corrected W2 should report SS tax withheld.

    Bottom line is - ask questions about how the SS will be reported on a corrected W2, and be prepared to have the additional amount withheld.

    One other thing - as for whether legally you are liable for paying taxes now that they were obligated to withhold last year the answer is no - if an employer makes a mistake which isn't caught until the next year the IRS has the right to collect the back taxes from the employer. So for example if you quit your job tomorrow so that your employer couldn't withhold from your paycheck the IRS could (and would) go after the company to pay both their share and yours. But obviously if you want to keep your job with your current employer this is not the tactic to take.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert

    May 8, 2013, 12:58 PM
    Ebaines covers it well.

    The simple fact is that even though you could legally skate on paying the FICA taxes for 2012, you do have the ethical responsibility to do so. It is best to let the company amend their returns to properly credit your SSA account for 2012.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert

    May 9, 2013, 12:12 AM
    Your H1-B income is subject to Social Security and Medicare taxes. Your employer made a mistake of not withholding these taxes. Now they are claiming it from you.
    Yes, you should pay it back.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

My employer forgot to pay my social security tax and medicare tax for 8 years. [ 7 Answers ]

Dear all- I would like to ask all your favors if you know good tips for this issue... I was full time employee of the employer "J" from May 2000 through August 2008. After I left J and became a freelancer, we found out that J didn't pay half part of social security tax and medicare tax for...

Employer did not collect social security tax and medicare of H1b [ 4 Answers ]

I started working in U.S with TN Visa status from Jan 2008 to Sep 2008 then with H1B until now. I went accountant office for my income tax return and submit my W2 but had a trouble. He said my employer has not collected social security tax(SS) and medicare(MD) and I might be punished later. HR...

Must R1 visa holders pay Social Security and Medicare Taxes? [ 1 Answers ]

Hi, I am an R1 Visa Holder. My employee withholds Social Security and Medicare taxes. I have been told that since I am a non-resident, I may not be required to have these taxes withheld. Is there truth to that? Where can I find it in the tax code to show my employee? My employee has been...

Do F1-visa student pay social security and Medicare Taxes? [ 1 Answers ]

I am F1-visa student. Currently I am working using CPT program. I leave in US for two years. And I am working the same company for two years. Starting from January, 2007 they ask me if I am a citizen for tax purpose and have to pay social security and Medicare taxes. They also sent this link to me....

Social Security + Medicare. Didn't pay ! [ 1 Answers ]

Hi, This is in regards to your response on this thread. I have a couple of questions if anyone can help... My employer doesn't deduct my Social Security since I was on H1B (oct 2005). I think he is not aware of the fact that I am also...

View more questions Search