I recently discovered that my employer did not withhold FICA taxes (Social Security and Medicare) for me from 2022 to 2025 after I changed my status from F-1 to H-1B. The company is now asking me to repay the full amount (~$27,000). From my understanding of IRS regulations (26 CFR §31.6205-1(d)(1)): If the undercollection is discovered within the same calendar year, the employer may recover it from the employee.If the year has already closed, the employer cannot legally require the employee to repay prior-year FICA taxes — the responsibility rests with the employer. I was fully compliant with my visa status and the company processed my H-1B petition, so they were aware of my status change. I cannot afford to repay this amount, and I plan to ask the payroll/HR team to review the matter with Legal/Tax to ensure compliance. Has anyone encountered a similar situation? How did your company handle it? do I have to pay them back?

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Solved

Fica taxes

Forum|Forum|10 months ago
November 11, 2025
3 replies
213 views

I recently discovered that my employer did not withhold FICA taxes (Social Security and Medicare) for me from 2022 to 2025 after I changed my status from F-1 to H-1B. The company is now asking me to repay the full amount (~$27,000).

From my understanding of IRS regulations (26 CFR §31.6205-1(d)(1)):

If the undercollection is discovered within the same calendar year, the employer may recover it from the employee.
If the year has already closed, the employer cannot legally require the employee to repay prior-year FICA taxes — the responsibility rests with the employer.

I was fully compliant with my visa status and the company processed my H-1B petition, so they were aware of my status change. I cannot afford to repay this amount, and I plan to ask the payroll/HR team to review the matter with Legal/Tax to ensure compliance.

Has anyone encountered a similar situation? How did your company handle it?

do I have to pay them back?

Best answer by Mike9241

if the employer discovered the error in 2025 and paid you renumeration in that year, the reg says the employer can deduct it from your 2025 renumeration. if none was paid, the obligation of the employee to the employer with respect to the undercollection is a matter for settlement between the employee and the employer. the last sentence means you should see a lawyer that specializes in employee compensation issues.

however, when did the employer "ascertain" the error. that too is a question for a lawyer

Mike9241

Level 15

don't see what you are saying

the employer must collect the amount of the undercollection on or before the last day of the calendar year by deducting the amount from remuneration of the employee, if any, paid after the employer ascertains the error.

Mike9241

user17628346220Author

Level 2

Question is: do I have to pay them back for the years they didn’t withhold the FICA taxes? We are talking about 4 years and amount 27k. Is that legally right?