Social Security Tax

[NotEasy]

Taxpayer were on workman compensation for 3 months in 2007. But his employer accounting department made a mistake and still paid him while he was not working in those 3 months. He has since then repaid the 3 months salary to his employer. But his employer said they have also paid their share of the FICA (6.2%) and Medicare for him, so they want him to pay back those taxes too. Reasonable? I think not. So what do they have to do in order to get back the excessive FICA and Medicare that the employer has paid for him?

[Koss]

Repayment

Did the employer correct this error in time to issue an accurate Form W-2?

If the wages in question are not reported on Form W-2, then it is utterly ridiculous to suggest that the employee pay back the employer's share of FICA. If the wages are not reported on Form W-2, then the employer presumably never turned those FICA taxes over to the US Treasury.

If the wages are included in Form W-2, the employer may be taking the position that it is too late to correct the error because the books are closed for 2007. They may be treating it as a repayment of wages from a prior year.

And that's a whole different ball of wax.

With that said, it feels like they should still be able to file an amended Form 940.

Or whatever that form is. Geez, I haven't done a payroll tax return in years. I'm not really qualified to answer this question. LMAO

Burton