Am i obligated to pay my former employer back FICA monies that she paid on my behalf?

Question

I was found to be an employee and not a contract worker after filing a 8919 form with the IRS during tax time. My former employer recently sent me a letter along with a corrected 1099MISC, new W2 reflecting payments made by her for me and on my behalf. Further down the letter she states that I need to make a check payable to her for the amounts (monies that would have been deducted from my pay check including FICA, STATE UC, city wage tax) and mail it to her business address. I already paid my share of the federal and state taxes to the government back in April. I'm confused. Do i have to pay her the money she paid in for me?

I'm in pennsylvania.

Answer 1

If you filed an 8919 and paid the tax, the employee portion of the tax has been paid by you. You owe it once. Let your former employer know that.  You should also let her know if you have paid the income tax on your earnings because that will be credited against what IRS zapped her for.

Your former employer may have been audited under a section of the Internal Revenue Code that provides for assessing less than the actual tax that would have been due.

Answer 2

In my opinion, your tax obligation ended when you filed your 1040, 8919, state and city returns and paid the taxes.

It sounds as if she is trying to bill you for HER payroll taxes which you have no obligation to pay.  She screwed up and is now trying to take it out on you.  She owes the feds and state some money and she is trying to make you pay it.

You may have to get a CPA or EA to write a letter on your behalf or talk to her accountant or her.

How is the job market in that area?

Answer 3

Not if you already paid it to the IRS you don't.  She was required by law to withhold money from your pay for fica which she was supposed to match.  If you paid that money to the IRS you don't have to pay her anything.  State withholding is not matched and Unemployment is not matched either.

Answer 4

It seems that she issued you a new W-2, paid her half of the Social Security and Medicare, and also paid your half of the Social Security and Medicare.  Since she could not deduct it from your pay, she wants you to pay the employee share back to her.

But, if you have already paid your share as figured on Form 8919, you don't have to pay her for Social Security or Medicare.  She needs to get the overpayment back from Social Security.

You should send her a check for the amounts withheld other than FICA.  Tell her that the employee share of Social Security and Medicare has already been paid by you.

Answer 5

Not sure. You may have already paid FICA taxes that would include the former employer's share...maybe not. Regardless, gather you paperwork and ID's. Then call the IRS now to get this resolved. The number is 1-800-829-1040.

Answer 6

Do not call the IRS.  Your taxes are fine.  Do not ask the IRS to fix something that ain't broke.  They'll try and end up breaking something.  If your employer paid both halves of FICA, she overpaid and needs to amend her employment tax returns.

Answer 7

You owe your employer NOTHING.  

If she was zapped by the IRS for the FITW withholdings or the employee portion of the FICA that she should have deducted from your pay but did not, she'll have to apply to the IRS to have that refunded to her.  This is HER problem, not yours, and it serves her right for playing fast and loose with the rules.

Congrats on the win, by the way!  Just tell that old cow to eat rocks; you owe her bubkus!