FICA taxes not withheld

[fishhead]

I live in Pennsylvania, and my employer failed to deduct FICA (Social Security) taxes from my wages for the past 3 years. I happen to catch the issue when I saw zeroes in that column on my annual Soc Sec Statement. I have no reason to believe this is anything more than a honest error on their part. This occurred when I transferred internally to a new position in another division of the company.

My employer didn't pay "their half" either, so I'm certain that they are on the hook for that. I am also pretty sure that they are on the hook for any penalties and interest. My question is whether or not I am on the hook for the full amount of the back taxes that were not previously deducted. From reading this and other forums I suspect the answer is yes, but I want to make sure before I cough up the $15k.

Thanks in advance for any advice!

 

[LdiJ]

I live in Pennsylvania, and my employer failed to deduct FICA (Social Security) taxes from my wages for the past 3 years. I happen to catch the issue when I saw zeroes in that column on my annual Soc Sec Statement. I have no reason to believe this is anything more than a honest error on their part. This occurred when I transferred internally to a new position in another division of the company.

My employer didn't pay "their half" either, so I'm certain that they are on the hook for that. I am also pretty sure that they are on the hook for any penalties and interest. My question is whether or not I am on the hook for the full amount of the back taxes that were not previously deducted. From reading this and other forums I suspect the answer is yes, but I want to make sure before I cough up the $15k.

Thanks in advance for any advice!

Did you get a W2 at the end of the year, or a 1099-Misc?

Are you in an industry (new division) where you are receiving a pension in lieu of Social Security? Some civil service jobs and jobs in education don't have FICA withheld, they have a separate pension instead.

 

[fishhead]

Did you get a W2 at the end of the year, or a 1099-Misc?

Are you in an industry (new division) where you are receiving a pension in lieu of Social Security? Some civil service jobs and jobs in education don't have FICA withheld, they have a separate pension instead.

I received a W2, but didn't take note of the fact that box #4 was empty.

Good question regarding my new division, it does have a pension (small, not better than nothing), but it's in addition to Social Security rather than in lieu of.

Since my original post I received an EMAIL from Payroll saying I could pay a lump sum for 2008 and they'd generate a corrected W2 for 2008 before I file returns. However, they said I'd have to deal with the Social Security Administration for 2006 and 2007. I sent a response asking if they had failed to pay "their half" for those years (they already told me that they failed to pay their half in 2008).

Bottom line, I guess I'm on the hook for my half of all three years, and it's not like I have $15K just sitting around

Thanks again,
Bob

 

[LdiJ]

I received a W2, but didn't take note of the fact that box #4 was empty.

Good question regarding my new division, it does have a pension (small, not better than nothing), but it's in addition to Social Security rather than in lieu of.

Since my original post I received an EMAIL from Payroll saying I could pay a lump sum for 2008 and they'd generate a corrected W2 for 2008 before I file returns. However, they said I'd have to deal with the Social Security Administration for 2006 and 2007. I sent a response asking if they had failed to pay "their half" for those years (they already told me that they failed to pay their half in 2008).

Bottom line, I guess I'm on the hook for my half of all three years, and it's not like I have $15K just sitting around

Thanks again,
Bob

Yes, you are on the hook for your half, but I do not understand why you haven't heard from the IRS long before this on the issue...and why your company hasn't heard from them.

You can and should amend your 2006, and 2007 returns, and should use form 8919 so that you don't get stuck with their share of the FICA taxes too. I would recommend using a tax professional. You can also ask for an installment agreement.

 

[fishhead]

>Yes, you are on the hook for your half, but I do not understand why you haven't heard
>from the IRS long before this on the issue, and why your company hasn't heard from them.
It is a little odd, but I figure it's because our company is so big (300,000+ employees) and that we use a lot of contract workers that don't have FICA withheld!?

>You can and should amend your 2006, and 2007 returns, and should use form 8919 so
>that you don't get stuck with their share of the FICA taxes too. I would recommend
>using a tax >professional. You can also ask for an installment agreement.
I assume you mean that I should amend the returns in terms of submitting an amended W2 showing something in the FICA boxes? The return itself doesn't change based on paying these back FICA taxes, right?
Anyway, I am looking around the Superpages, etc to find a Tax Attorney ... I suspect I need to make a few phone calls, as some of these ads and lawyer web sites don't see to provide exact details regarding what services the REALLY provide

Oh will, thanks again for your responses

 

[davew128]

Have you by chance been nominated to be Secretary of the Treasury? Just curious.....

 

[fishhead]

Have you by chance been nominated to be Secretary of the Treasury? Just curious.....

I've been found out! But seriously, I remember when the story broke, and I had not yet learned of my dilemma, that it must be pretty tough "not to know" about having unpaid taxes. Well, _ _ _ _ happens, and here I am FICA isn't deductible, so I haven't paid attention to this when doing income taxes, and my paychecks are online, so I guess one lesson here is to go online and scrutinize the numbers from time to time.

I have an appointment with a Tax Attorney to get the forms filled out and to get advice on my options. As for finding the $$$ to pay, that's another story.

Thanks again,
Bob