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?
