Overpayment?

My previous California employer just sent me a notice on 12/2000 stating that they overpay me because they neglected to take out Social Security/Medicare tax deductions from my 9/1997 and 10/1997 pay checks. They want me to mail a check for the overpayment.

I will go ahead and do so but I feel uncomfortable with the fact that more than 3 years has elapsed. Should I be uncomfortable? Thanks in advance.


[Edited by aamercado31 on 02-03-2001 at 01:51 AM]

Withholding

It is the employer’s responsibility to withhold the tax. It is your responsibility to supply the employer with the proper info to do so (Form W4). If you did file a correct form W4 with the employer, you have done what is required of you. Therefore, you are subject to no penalties, and I believe you are not liable to the IRS for the under withheld tax.

I can not say for sure, but I also think you would not be liable to the employer for the payment the employer is asking.

The fact that 3 years has gone by does not necessarily mean much. The 1997 tax year, as far as the employer’s returns for withholding, are not yet barred by the statute of limitations. Possibly the employer is being audited now on that year.