Employee share of SSI and Medicare

[Mnpops]

If I pay the employee share of SSI and Medicare deductions do I have to include that in the employee's income & W2?

[Vanessa A]

Are you saying you didn't withhold it from their wages and you just paid it?

[Mnpops]

Yes, that's correct.  I did not withhold it.  I'm just paying it.  I took that path based on publication 926 which says that the employer can pay the employee's share of social security and medicare taxes.  Unfortunately I can't find any information on how I report that.  Specifically, if that has to be reported as additional compensation to the employee and if I can include that in the payroll taxes deduction in my business expenses.

[Vanessa A · Accepted solution]

Yes, this has to be reported as additional employee compensation and included in box 1 of their W2 

You will take this as a deduction when you deduct employee wages paid.