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  1. #1
    Join Date
    Nov 2013
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    2

    Default FICA Was Not Deducted by My Employer for the First 8 Years of My Employment

    I worked for the same company (fortune 100) for 12 years and quite my job a few months ago due to family relocation to another country. Recently realized several years of payment missing from my social security statement and contacted HR. They found out that company did not deduct FICA for the first 8 years of my 12 years employment. Can you advise what my vs. my companies' responsibilities are in this matter? Are there any tax lawyers you would recommend that is specialized in this matter? Thanks for your help and Best Regards.

  2. #2
    Join Date
    Oct 2006
    Posts
    15,984

    Default Re: Fica Was Not Deducted by My Employer for the First 8 Years of My Employment

    Quote Quoting FICA
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    I worked for the same company (fortune 100) for 12 years and quite my job a few months ago due to family relocation to another country. Recently realized several years of payment missing from my social security statement and contacted HR. They found out that company did not deduct FICA for the first 8 years of my 12 years employment. Can you advise what my vs. my companies' responsibilities are in this matter? Are there any tax lawyers you would recommend that is specialized in this matter? Thanks for your help and Best Regards.
    This honestly makes no sense...particularly for a Fortune 100 company.

    Any "mistake" that would have happened would have been caught by the IRS long before now. One of three things is possible. You were an independent contractor and therefore had to pay social security and medicare taxes as self employed, or you were a W2 employee and it would have been caught virtually immediately if your employer was not withholding and paying in social security and medicare taxes, or you were in an industry that had a separate pension plan that qualified as a replacement for social security and medicare.

    The first issue would not result in income missing from your social security statement. In the second issue that IRS would have caught it virtually immediately and it could not have gone on for 8 years...in the third instance its virtually impossible that you were working for a Fortune 100 company...because that instance belongs to public servants.

  3. #3
    Join Date
    Sep 2010
    Posts
    19,482

    Default Re: Fica Was Not Deducted by My Employer for the First 8 Years of My Employment

    Do you have tax forms for these years? As ll says it seems incredulous to me. The IRS computers should have kicked out either situation: the W-2 missing FICA or the 1099 with no SE tax pretty automatically.

  4. #4
    Join Date
    Nov 2013
    Posts
    2

    Default Re: Fica Was Not Deducted by My Employer for the First 8 Years of My Employment

    Thank you for your quick replies. I was a full time employee for the entire duration of the employment. Indeed it is difficult to believe that it was not cought by any controls in place at my company or irs. But as I understand it, I was not supposed to pay FICA the first year of my employment due to my visa type (As you may know, foreign national students are allowed to work with f1 visa for a year as optional Practical training). However, foreign nationals are expected to pay FICA as soon as they are on work visa ( h1b), which for me was exactly a year after my start. Perhaps my company did not change my status in their system. Not sure what triggered my company to finally start deducting those 4 years ago, but I plan to discuss that in detail, but I first need to better understand mpg option from independent subject matter experts. As per my former companies legal team, I would have to pay about 50K+penalties, etc., and it is even more for them.

    Do you have any opinion on how to proceed?

    Thanks Again,

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: FICA Was Not Deducted by My Employer for the First 8 Years of My Employment

    This should have come up when you filed your yearly tax returns. The zero in a box is a dead giveaway.

  6. #6
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: FICA Was Not Deducted by My Employer for the First 8 Years of My Employment

    You are correct, social security and medicare taxes are not withheld from wages for an F1 visa holder. It seems that your company's payroll department never adjusted your status in their system. They should have withheld the money and matched it, remitting the total to the IRS. Have you spoken to them? There may be a way to correct this but it would involve you paying the taxes now and your employer matching it. You can certainly amend returns and file form 8919 to notify the IRS that you owed the tax and pay it that way. This would be your alternative if the employer is uncooperative. However, this form may have only existed for three or four years. And, if you don't want to pay the money now, then there's really nothing to be done because the employer is certainly not going to pay your half on your behalf.

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