W-2 No FICA, Medicare withheld

[Terry]

Employer withheld no FICA Medicare taxes on W-2 because she presumed spouse had Form 4029 (exemption from SS & Medicare for Amish & Mennonite). Spouse does not have a Form 4029 and Taxpayer had told wife to tell employer to withhold the taxes. Spouse is member of the church, just never obtained her 4029. Now Taxpayer (he has his 4029) would like to pay in the SS & Medicare taxes without causing Employer any problems. Can this be accomplished??
Thanks for any suggestions you may have.

[Koss]

FICA not withheld

The only proper way to fix it is for the employer to file a corrected Form W-2 with the IRS, and issue a copy to the employee.

Of course, this has a domino effect. The employer will then have to file a corrected Form 941, and send the missing FICA withholding to the IRS.

The employee's share of FICA withholding can certainly be collected by the employer from the employee. The employee can write a check to the employer, or the employer can withhold it from the employee's next paycheck, but not as withholding, because it is for the prior year. It would just be a miscellaneous payroll deduction. It would not be part of payroll reporting for 2013. It is simply a case of the employee reimbursing the employer for something they actually owe.

The employer will have to pay the employer's share. If the employee wants to pay that share, too... Well, it doesn't work that way. But that's between the employee and the employer.

This is the only proper way to do it, because they need to make sure the employee is properly credited by the Social Security Administration.

BMK

[taxea]

The employer has no right to make such an assumption. Along with everything else that has been posted I would recommend that someone tell the employer to hire a payroll service or person who knows how to do payroll. And why didn't the TP catch this on her paystubs?????? TP should make an immediate est pmt to the US treasury to cover the amount with a letter of explanation. It is not truly her fault that the employer doesn't know the rules. And it is not her job to keep him out of trouble when he doesn't follow them.

[Koss]

Estimated Payment?!

taxea wrote:

TP should make an immediate est pmt to the US treasury to cover the amount with a letter of explanation.

I think that's a terrible idea...

Payment of the FICA tax--both the employer's share and the employee's share--needs to be made with a corrected Form 941. The payment needs to be made by the employer--not the taxpayer.

BMK

[Super Mom]

This church "employee" wouldn't be a minister and therefore subject to SECA and not FICA would they?

[Koss]

Not a church employee

Form 4029 has nothing to do with church employees; that's a different world.

The Old Order Amish are completely exempt from FICA. The exemption applies to all earned income, regardless of who the employer is.

Most of them do not work for a church.

The rules for church employees are not applicable here.

BMK

[Super Mom]

Form 4029 has nothing to do with church employees; that's a different world.

The Old Order Amish are completely exempt from FICA. The exemption applies to all earned income, regardless of who the employer is.

Most of them do not work for a church.

The rules for church employees are not applicable here.

BMK

Oh yes, sorry, that is 4361!

[taxea]

taxea wrote:



I think that's a terrible idea...

Payment of the FICA tax--both the employer's share and the employee's share--needs to be made with a corrected Form 941. The payment needs to be made by the employer--not the taxpayer.

BMK

But until that happens at least the taxpayer has paid the amount to cover his share. I never said it should be paid and no corrections made on the part of the employer. The employee is not responsible for what the employer doesn't do. Employee only needs to cover his own butt.