Social Security Overpayment

Forum|Forum|6 years ago
April 26, 2020
5 replies
49 views

Hi All,

My employer uses ADP for payroll who is considered my "employer" when it comes to my W-2. My company changed its name halfway through 2019 which caused me to get two W-2s from ADP. However, since my "employer" was still ADP, I overpaid Social Security taxes by over $1,400.

TurboTax noticed this but that's it. TurboTax says to get a refund from my "employer" which would be ADP (not my real-life employer). However, ADP issued me a statement saying that they are not able to refund any excess SS taxes and that under my circumstances, I need to claim it as a credit on my income tax filing and it be refunded directly by the IRS.

My question is: How do I add this to my filing so that I get the amount I overpaid back? I can't seem to find any option within TurboTax to add this credit.

Any help is greatly appreciated. Thanks in advance.

Best,

Dan

TurboTax Deluxe Online

Anonymous

this leaves you in a very unfortunate situation. technically if there was only a name change, the company should have opted for the election to claim credit for the wages and taxes paid under the old name and alerted ADP so it would not start anew for Social Security. i'm going by your statement that all that occurred was a a name change. becuase then the IRS would not require the company to get a new ein and without a new ein there is no reason adp should have over withheld on social security. talk to you real employer.

if that doesn't work

if the excess was withheld by employer error you can not take the credit, but must instead get a refund from your employer. If your employer refuses to do so, you can file form 843 to request a refund from the government. See page 240 of: http://www.irs.gov/pub/irs-pdf/p17.pdf

ridgewoodianAuthor

Level 2

Thank you for the reply! I see I wasn't super clear in my question - in reality I think it was more than a name-change for my company. I am told to treat it like two different employers under the same CPEO (ADP). I feel like ADP, as a company who does this literally as their service, should be aware of things like this and adjust accordingly. They issued an explanation stating that "as there has not been an overpayment of the Employer portion of the Social Security taxes, there is no mechanism by which ADP TotalSource could file an amendment or refund. As a result, it appears that an individual who works for multiple unrelated clients of a CPEO and is therefore subject to separate taxable wage bases should likely be treated similar to an individual working for two separate employers outside of the CPEO agreement. Under these circumstances any excess Employee Social Security taxes withheld due to the application of more than one taxable wage base to the individual during the prior calendar year would generally be claimed as a credit on the individual's annual income tax filing and refunded directly by the IRS."

bearinman27

Level 2

Can you tell me what the resolution to this was? I am experiencing the same thing this year. Mid year change to business entity, both using ADP TotalSource FEIN, overpaid SS, Turbotax is stuck. It wont move on and a corrected W2 isn't required when you work for 2 different employers same year.