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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Correcting FICA Error from 2011
Created On Sunday April 01, 2012 2:26 PM
  Correcting FICA Error from 2011
  Correcting FICA Error from 2011
  Correcting FICA Error from 2011


Neenie


Posts: 31
Joined: Feb 2008

Sunday April 01, 2012 2:26 PM

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Hi All!

I'm an internal auditor at an insurance company. During a review of disability insurance claims paid in 2011, I noticed that Social Security taxes were incorrectly calcualted at 6.2% rather than the 4.2% effective in January 2011 for the payroll tax holiday. As a result, the claimants were underpaid between $20 & $40. I plan to recommend that the claimants be reimbursed the amount of the underpayment. What else would you recommend?

Thank you.

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controlpatrol


Posts: 23
Joined: Dec 2006

Tuesday August 21, 2012 2:19 PM

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Is this an issue where they anticipated the relief extension would not be passed?

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hopingtopass


Posts: 17
Joined: Jul 2012

Thursday August 23, 2012 1:50 AM

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You could either (1) reimburse the claimants the amount of overwithholding or (2) pay for amendment of the claimants' tax returns. Social security is an element of form 1040. Taxpayers can file claim for refund of overpayment of FICA taxes as part of income tax return. The response depends on how much effort you want to force upon the claimants, and the cost involved with each option. It is possible, though, that the IRS has already identified this overpayment and refunded amounts to claimants.

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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