W2 is wrong- No Medicare listed at all

[Taxadvisor VA]

Client brought in a W2 with no Medicare wages or Medicare tax with-held. It is prepared wrong as I ran the numbers to see if may be they combined Social Security & Medicare in the same box. Nope 6.2% of Social Security wages.

Now- Client wants to file the return. What are the ramifications?
1) I think SSA & IRS both will eventually catch the error when they review the W3 totals against the W2's included with the submission. The employer will owe the match on the Medicare tax never listed or collected properly.
2) My client should have had with-held from her pay Medicare tax but did not. What is the worst case? IRS send her a notice to pay up the Medicare tax, which BTW is < than $100.

I'm thinking file the return and let the system catch up. I'm not trying to exonerate my client as you're right she should have checked her pay stub to make sure it was right. For whatever reason some people just don't look at their pay stub. I was all over my 3 kids making sure they checked their pay stub and taught them what to look for.

What would you do? Has anybody had this problem? If so what happended?
Thanks,
Taxadvisor VA

[Koss]

Pay stub?

Have you seen any of their pay stubs?

Maybe medicare tax was properly withheld, but not accurately reported on Form W-2.

BMK

[joanmcq]

I have a lot of teachers and college professors out here that don't pay SS and/or Medicare. Make sure the employer isn't an agency that is exempt from Medicare.

[Burke]

If this is a student who also works for the school, no FICA is withheld or due.

[Koss]

Exemptions

I've seen government employees who are exempt from social security, and pay only medicare tax.

And I've seen the college students who are exempt from all FICA tax.

I have never heard of a case where the wages are subject to social security but not subject to medicare.

BMK

[Burke]

Me, either. I would have the TP contact the employer for a corrected W-2.

[mastertaxguy]

Might it be that the taxpayer is a non-resident alien, or an agricultural worker, or a family employee, or someone on disability?

[ChEAr$]

To the OP. Don't worry about it. What we file are income tax returns and we don't have to worry about incorrect amounts in boxes 5 and 6. Just file it.

[Burke]

Good point. We have enough to do.

[S T]

Yes - really - it is the Employer's issue on filing correct W-2 forms and their reporting, not the employee issue unless we do not receive a W-2 form and have to reconstruct using the Substitute form 4852.

Sandy