Employer Failed to Withhold FICA

[Zarely]

I've been working for a university since 2021. This year (2024) they discovered they haven't been withholding FICA tax since I was hired. I had been a student under them before, and when I got hired as staff they failed to change the code and never noticed.  They are now trying to recoup the FICA I owe thus far this year, and are trying to see if they can legally get away with not reporting FICA for the last 3 years. If they do, they expect to recoup around 10k from me to recover my share of the FICA their error caused them to fail to withhold.

Am I responsible for the FICA they failed to withhold for the last three years? Can they legally not report the FICA for the years I was eligible and they messed up on? How will this affect my taxes that have already been field and accepted for the last several years as well?

[KrisD15]

HERE is a TurboTax link that addresses your issue.

HERE is an IRS link for information 

The employer is responsible for getting the proper tax amount to the Social Security Administration.  

Your tax returns would not change since your tax returns calculate income tax, not FICA tax. Your yearly tax liability would not change. 

Your employer will need to recoup your portion.

[Opus 17 · Accepted solution]

If the employer was supposed to withhold $10,000 of social security and medicare taxes, that means they were supposed to send $20,000 to the government (they match your withholding).  If they file amended tax returns to report and pay that $20,000, there are IRS regulations that allow them to recoup the $10,000 from you.  If the employer doesn't recoup the $10,000 from you, they must report it as taxable income on your W-2 (possibly all in 2024, possibly by issuing corrected W-2s for all the past years).  

There could be a law in your state that prevents employers from taking your money to fix this kind of mistake.  You would have to contact your state labor department.  But if they don't recoup the taxes, the money is extra taxable income for you.  

[cyrilliu710]

"There could be a law in your state that prevents employers from taking your money to fix this kind of mistake.  You would have to contact your state labor department."

Is California in the list of the states you mentioned?

Thanks.

[Opus 17]

---

@cyrilliu710 wrote:

"There could be a law in your state that prevents employers from taking your money to fix this kind of mistake.  You would have to contact your state labor department."

Is California in the list of the states you mentioned?

Thanks.

---

Every state has different labor laws.  You have to check with your state.