Question

Owe employer as FICA not deducted

Forum|Forum|2 years ago
October 18, 2023
3 replies
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Trying to figure out how to calculate amount owed to Employer for W-2C. FICA was not withheld due to employer error and now a W-2C has been generated. Previously reported info on incorrect W-2 was 20,646.82 for SS and Medicare Wages, $1280.10 for SS tax withheld and $299.38 for Medicare tax withheld.

Correct (W-2C) information is 118,191.97 SS and Medicare wages, 7327.90 for SS tax withheld, and 1713.78 for Medicare tax withheld.

What is owed to the employer now?

Thanks so much!

Not A Product Question

Employee

Employee

Normally, the employer would file amended quarterly payroll form 941, reporting the changed wages, and including payment (their half plus your half) for the extra reported SS and Medicare wages. So the employer would already know what they paid in. They could withhold that from your current checks or ask you to reimburse them. Are you just trying to doublecheck their math?

If box 3 SS wages are	box 4 SS withholding should be	if box 5 Medicare wages are	box 6 Medicare tax should be
20,646.82	$1280.10	20,646.82 (6.2%)	$299.38 (1.45%)
118,191.97	$7327.90	118,191.97	$1713.78

If the corrected W-2 has boxes 4 and 6 blank (or using the old figure only) that is because the old withholding was unchanged, and the W-2 shows what was actually paid to the IRS, even though it was incorrect. I don't know how to fix this. The usual forms to pay uncollected social security and medicare taxes don't cover this situation.

M

Mike9241

if they only withheld based on the 20646.82 in wages you would owe then social security taxes (7327.90-1280.10) = 6047.80 and medicare taxes of (1713.78-299.38)=1414.40. by the way is the income tax withholding correct based on the $118k. if not you could end up owing penalties for late payment

discuss with your what options they'll give you.