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  1. #1
    Join Date
    Aug 2018
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    2

    Default FICA Deducted by Employer but Not Remitted to the IRS

    Hi! I would like to seek assistance and answer to my question; If FICA deducted by Employer but not remitted to IRS can be refunded by the Employer back to the employees? Since 2014 to present we have been continuously deducted from our salary but payments and reports to IRS where not being submitted.

    Hoping to get a helpful answer. Since i guess the employer does not have the capability to pay to IRS the employer & employee contribution, it might as well refund refund the amount they deducted to their employees. Please help! Thank you

  2. #2
    Join Date
    Oct 2016
    Posts
    2,651

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    If he has the capability to pay you back there is no reason he couldn't pay the feds with the added benefit of him not breaking the law and you not having to pay both sides.

  3. #3
    Join Date
    Mar 2013
    Posts
    16,668

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    This is something you and the other affected employees should be contacting the IRS about.

    https://www.irs.gov/compliance/crimi...al-enforcement

    I seriously doubt that you'll be getting any money back from your employer. He's a criminal and has to be dealt with by the IRS.

  4. #4
    Join Date
    Aug 2018
    Posts
    2

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    Not possible to request refund from Employer?

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    23,820

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    It is possible to REQUEST it, yes.

    REQUESTING it and GETTING it, though, are two different things.

  6. #6
    Join Date
    Jan 2011
    Posts
    233

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    Quote Quoting ivandon1975
    View Post
    Not possible to request refund from Employer?
    You don't understand; your employer very likely used the withheld tax money to pay its own loans and operating expenses so it wouldn't go bankrupt. That money is not just sitting in a bank account.

    You and your coworkers need to use the info at the link posted by adjusterjack.

  7. #7
    Join Date
    Oct 2014
    Posts
    7,088

    Default Re: Fica Deducted by Employer but Not Remitted to Irs

    Quote Quoting ivandon1975
    View Post
    Hi! I would like to seek assistance and answer to my question; If FICA deducted by Employer but not remitted to IRS can be refunded by the Employer back to the employees? Since 2014 to present we have been continuously deducted from our salary but payments and reports to IRS where not being submitted.

    Hoping to get a helpful answer. Since i guess the employer does not have the capability to pay to IRS the employer & employee contribution, it might as well refund refund the amount they deducted to their employees. Please help! Thank you
    Federal law requires the employer to deduct income tax and FICA taxes from the employee, and pay a matching share of FICA out of the employer's own pocket. If the employer deducts the tax but fails to remit it to the IRS what happens is that the IRS gives the employees credit anyway for the taxes the employer deducted and goes after the employer to collect it. The employee doesn't have a claim to get it back from the employer.

    For the employer, deducting the tax but failint to remit it to the IRS is one of the worst things the employer can do. The tax penalties for that are extremely expensive. Moreover, the withheld taxes may be assessed personally against every official in the company who was responsible for ensuring that these funds got paid to the government. Also, the withheld tax amount the employer and the company officials owe is not dischargeable in bankruptcy. And finally, there is the possbility criminal prosecution for those company officials.


    Quote Quoting bcr229
    View Post
    You don't understand; your employer very likely used the withheld tax money to pay its own loans and operating expenses so it wouldn't go bankrupt. That money is not just sitting in a bank account.

    You and your coworkers need to use the info at the link posted by adjusterjack.
    What the employess really need to do is keep their paystubs and other records to show that the employer deducted the income and FICA taxes so that they can get credit for that. When employees show up and claim the withheld tax that the employer did not remit the IRS will figure out what the deal is and go after the employer.

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