Deferred Compensation Medicare tax paid

[delaney]

Client received a short term deferred contingent award plan. The vested portion of the award is subject to FICA at the time of vesting. FICA was withheld on 12,319. When he becomes full vested (5 years) gets money which is ordinary income subject to fed and state taxes.

Client leaves company after 11 months. Never fully vests. He wants to know what happens to he FICA money he paid in.....can he get it back? Does he just lose it? His medicare wages were increased by the 12K (he is over the limit for SS) so it is $179 that he is losing. Not much money but I would like to be able to give him an explanation.

Thanks for your help.

[JG EA]

I couldn't find anything on paying SS, Med taxes on anything but deferred compensation. Since there was no deferred compensation are you sure that this is correct? I haven't heard of this, but there is much I haven't heard of. I've only run across them checking the retirement box when someone isn't vested, but not paying SS, Med taxes on.