Ok ... once again each employer is treated separately when paying in FICA taxes for their employees and this has been the way it has been forever. Each employer will pay in until their employee has reached the maximum on the form 941 and a payroll company should know this. There are two solutions for an employee getting back the excess paid in but not for the employer. The actions you describe to get back the excess FICA taxes was if your businsess messed up and kept paying/withholding when your employee hit the maximum limit to cause an excess to be paid in ... but you did not hit the limit with that employer (your business). I doubt the IRS will allow you a credit where none is due but try if you like. You noticed this simply because you are one of your own employers ... most folks never see it like you did and kudos for recognizing the inequity of the system but that is just the way the rules have always been written ... it favors the SS administration and not you as an employer.
