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  1. #1
    Join Date
    Mar 2006
    Location
    Pennsylvania
    Posts
    39

    Unhappy FICA Taxes Not Withheld From Payroll

    I worked on practical training for an employer as a student from Jan '06 to Sept '06. And during that time, and as per the payroll tax laws, the employer did not withhold the FICA taxes (social security and medicare) from my payroll.

    Beginning Oct' 06 till date, I have been working full-time for the same employer (not as a student anymore). I did not check my payslips keenly all these days, and when I went to file my taxes the tax preparer said FICA taxes should have been withheld from my payroll and he cannot help with the tax filings (I filed for the tax filing extension).

    What is the right course of action for me now? Should I contact my employer and ask them why FICA taxes were not withheld from Oct '06 till date. And, if they are willing to re-calculate my payroll and ready to pay their share of FICA on my payroll, Do I have to pay my share of FICA for this time period (Oct'06 till date).

    Gurus, please suggest the best course of action. Is there anyway I can file my tax returns for 2006 without solving this mess.

    I greatly appreciate any guidance in this regard. Thanks

  2. #2
    Join Date
    Oct 2005
    Location
    Massachusetts
    Posts
    755

    Default Re: FICA taxes not withheld from Payroll

    You should have checked your pay stubs ( but I'm sure you knew that )
    Did you make enough money, that it matters?
    (8 k ish?)
    People who make little money, get what they paid in taxes anyway, so it might not make a difference whether or not you had FICA deducted.)
    As far as your employer, fill out a W-4
    Have an extra $20 a week taken out. This will either increase your refund, or lessen your tax due. It's a nice little savings plan, and you wont miss it ( and you can't spend it )
    I don't think your employer legally cares if you are taking out too much, too little, or trying to make up for lost time.
    I've never heard of an employer not taking out(at least the minimum) taxes unless you tell them too.
    Someone goofed.

  3. #3
    Join Date
    Mar 2006
    Location
    Pennsylvania
    Posts
    39

    Unhappy Re: FICA taxes not withheld from Payroll

    Dad2, I do not understand anything that you just said above.

    I apologize for my ignorance, but can someone please answer my questions please.

  4. #4
    Join Date
    Oct 2005
    Location
    Massachusetts
    Posts
    755

    Default Re: FICA taxes not withheld from Payroll

    Sorry man,
    I will type s l o w e r next time

  5. #5
    Join Date
    Oct 2006
    Posts
    16,093

    Default Re: FICA Taxes Not Withheld From Payroll

    Quote Quoting Innocentme!!
    View Post
    I worked on practical training for an employer as a student from Jan '06 to Sept '06. And during that time, and as per the payroll tax laws, the employer did not withhold the FICA taxes (social security and medicare) from my payroll.

    Beginning Oct' 06 till date, I have been working full-time for the same employer (not as a student anymore). I did not check my payslips keenly all these days, and when I went to file my taxes the tax preparer said FICA taxes should have been withheld from my payroll and he cannot help with the tax filings (I filed for the tax filing extension).

    What is the right course of action for me now? Should I contact my employer and ask them why FICA taxes were not withheld from Oct '06 till date. And, if they are willing to re-calculate my payroll and ready to pay their share of FICA on my payroll, Do I have to pay my share of FICA for this time period (Oct'06 till date).

    Gurus, please suggest the best course of action. Is there anyway I can file my tax returns for 2006 without solving this mess.

    I greatly appreciate any guidance in this regard. Thanks
    If your employer provided you a form 1099 for the income that you earned, then you have no choice but to file your tax return as if you were self employed. That means that you will be paying both the employee and the employer share of FICA. (Social Security and Medicare tax)

    You can take separate action against the employer, even with the IRS, to force the employer to pay their share of FICA...but it takes a long time and the results aren't guaranteed.

  6. #6
    Join Date
    Mar 2006
    Location
    Pennsylvania
    Posts
    39

    Default Re: FICA Taxes Not Withheld From Payroll

    Thanks for the response.

    I am working on W2 with this employer and not 1099. So the question of self-employed does not arise, as I have been an employee of this company.

    Appreciate your suggestions and look forward to hearing from you again.
    Thanks

  7. #7
    Join Date
    Oct 2005
    Location
    Massachusetts
    Posts
    755

    Default Re: FICA Taxes Not Withheld From Payroll

    How the hell did he understand what you said, and not what I said?
    lol

  8. #8
    Join Date
    Oct 2006
    Posts
    16,093

    Default Re: FICA Taxes Not Withheld From Payroll

    Quote Quoting Dad2
    View Post
    How the hell did he understand what you said, and not what I said?
    lol
    LOL...who knows for sure...but I have to explain these things daily, as part of my profession, so that might be a factor.

    However, I will make a comment here....the one major downfall of electronic and online tax filing is that it has seriously "dumbed down" the American public as far as understanding how taxes work.

    Prior to online and electronic filing many, many people did their own taxes, but they had to read and understand the instructions and publications in order to do so....so they were much more informed and educated.

    Now...nearly no one really understands how taxes work...they just assume that the software does it correctly, even if they might not be answering the questions correctly.

    Heck...even alot of professional tax preparers are the same...they don't know squat about how taxes actually work..what is legal or not legal.. they just know how to use the software. Many of them can't look at the software's results and say "this doesn't look right".

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