Overpaid Employer FICA Tax Question

Is there any way for an employer to recover the employer's portion of overpaid FICA when the employee worked for two different employers? The situation is that for 2006, the $5840 employer's share was paid by Company A and $802 was paid by Company B. $802 was overpaid by the employers. I understand that $802 employee's share of overpaid FICA will be recovered by the employee when filing their 1040. How and which business can recover the employer's share that was overpaid? If there is not any way to recover this amount, what can be done to avoid this situation in subsequent years? Thanks in advance for your responses!

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Reply to
Joey Bello
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The only party with overpaid FICA is the employee who is allowed by IRC §6413(c) to claim the overpayment as a refundable credit against his tax. Since there is no corresponding code provision for the employer, there is no overpaid FICA with respect to the employer in this situation. Frederick Lorca

Reply to
Frederick Lorca

No, only employees can be refunded overpaid FICA on their half.

Reply to
rick++

No, because neither employer overpaid.

The FICA the employer remits is really two different taxes: one on the employee, which is withheld from wages, and one on the employer. The employer pays FICA until that employer reaches the wage limit for the year. There are some provisions regarding predecessor/successor relationships between the employers in which the employee's YTD earnings carry over, but for the everyday employment switch, each employer pays based on its wages.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

Neither.

Don't hire people who worked or will work anywhere else during the year. ;) Phoebe :)

Reply to
Phoebe Roberts, EA

Each employer has to withhold FICA. There are no known exceptions to this (the govt's gotta balance the budget somehow)

The employee gets the excess FICA from 2 or more jobs, if any on their 1040. ___________________________________

-----> real address on hobokeni or hobokenx

Reply to
Benjamin Yazersky CPA

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