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Social Security backdated

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3

3years

Guest
New York State:

I transfered to the states 3 years ago. My company failed to set up my pay role correctly. Consequently my social security payments have not been deducted from my pay check for three years. The fault was corrected at the start of this year.

I have been asked recently to back pay all three years. Do I have any legal recourse in this situation?

thanks

3 years!
 


abezon

Senior Member
WHO asked you to pay the back years? The company or the SS admin? I believe that a company that screws up the withholding is liable for all amounts not withheld or paid, even if the company could have withheld the money from the taxpayer's check originally.
 
3

3years

Guest
The company asked me to pay the back years.

I know that the company has not contacted the social security office.
 

abezon

Senior Member
How did you not notice the glaring absence of entries in the SS & medicare boxes on your W-2 for 3 years? Or were they not giving you a W-2 & paying you like an independent contractor (1099)?

Tell your employer you don't think they lawfully collect the back taxes from you, since employers are liable for the employment taxes whether they deduct money from wages or not. This is true when an employer treats an employee like an independent contractor & doesn't withhold taxes.

Did they withhold income taxes? If so, they may be able to make you pay back the employment taxes (but not any interest or penalties the IRS imposes on them).
 
3

3years

Guest
The company have given me a W2 for each year. I am not familiar with US tax and social security as I transfered from the UK (not an excuse, I know).

I gave my W2 and other information to an accountant at the end of the year and they completed my taxes.

I am not an independent contractor.

They do withhold my income tax. And at the start of this year they corrected the social security and medicare and are now correctly with holding this amount from my pay check.

I am on a temporary visa and will be moving back to the UK with the next 12 months (and more than likely moving companies).

My problem is that the amount is very, very substantial (well in to 5 figures) and I have 3 questions really:

1. I am liable for all of the back payments?

2. If yes, should I contact the IRS or Social Security and make payments to them or should I pay the company?

3. Will I incurr penalties for this mess?

Thanks for all your help on this issue.

3years!
 

abezon

Senior Member
1. Maybe. Since the amount is in 5 figures, I'd recommend you talk to a tax attorney about whether the company can force you to reimburse them. The tax attorney can also help you negotiate/communicate with the company.

2. You do not make payments directly to the IRS. Your company has to send in the money & you would pay them if you owe anything.

3. You have no penalties. The company might have substantial penalties. Be sure they don't try to get you to reimburse them for the penalties.


For future reference, you will be eligible for US social security benefits or for increased UK benefits upon retirement because the US & the UK have a totalization agreement covering social security benefits for people who work in both countries.
 

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