social security

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Eb2tx_cpChennai

Registered Users (C)
my social security was not being deducted from my salary from last three years.
will my cp interview will get affecterd with this if they ask my tax papers.

in my w2 form it shows that i 0 deductionfor social security
 
I am little Curious!!

How come there is no Social security deduction!!!
Why did you keep silent for 3 years. Have you ever filed your US Tax returns. May be if you are on any visa other than H1 you need not be paying.
 
WOW!

SS is taken out at the source. If you are getting your Federal Tax taken out than SS and medicare are two other diductions that happen.

If you have filed for US tax in last three years than just take the Tax Transcripts. You did not "not pay" ss tax on your own..your employer is responsible to take that out.
 
Are you (..)Lucky?

How did this happen, never heard of before!!
For one who wants to go back to one\'s home country in less than 10 yrs & whoes country does not have a SS agreement with US, this is a very good sign. But I am guessing, that person would not be found in this forum...

One who wants to stick in this country for atleast 10 years, get GC..., this may be a violation of US law.

Whose fault is this.. I would agree with Patta hara, it would be employer\'s fault. But first chapter of law says- "ignorance is no excuse". Beware of INS....
 
Re: Eb2tx_cpChennai

Yes friends, as shocking as it may seem, not deducting Social Security (Med + FICA) taxes where applicable is possible. A common scenario is when payroll either codes the visa status incorrectly (e.g., F1-OPT instead of H1), or does not update employee\'s change in visa status (e.g., when people switch from F1-OPT to H1-B).

Now, Social Security taxes (Med + FICA) are independent of federal taxes. As part of the consular interview, you are required to provide IRS 9003. This form only checks for your Federal tax filing information. However, to be on the safer side, you should insure that all taxes are correctly paid.

1. Please check if your visa status allows you a waiver for these taxes. If so, you needn\'t worry at all.

2. If your visa status doesn\'t qualify you for a waiver, you need to pay the taxes. As PattaHara noted, your employer is responsible for deducting these taxes (FICA + Med) from your paycheck, along with your federal and state (if applicable) taxes. Your employer also needs to make a matching contribution. (Even though your employer should have made these deductions, you are ultimately responsible for paying your taxes.)

If your employer did not deduct these taxes, have them file an amended W2-C for each applicable year. You will have to contribute your portion of the taxes. Your employer will need to make a matching contribution and may need to pay penalties.

Please call payroll and discuss this issue at your earliest convenience. They might frown since you didn\'t discover it three years ago :) Send them your portions by checks (one check per year) and ask them for W2-Cs. Since there was no problem with federal taxes, you won\'t need to file amended tax returns to IRS / States. Carry these W-2Cs with you to the interview, but only provide them when asked for.

Good luck!
 
Are you in OPT

SS and medicare are called FICA tax and must be deducted from your salary irrespective of your residencial status. For more details, read IRS publication 519 or 518. Your employer may be in trouble and are inviting IRS audit. I dont know how the consulate will interpret this.

However,if your are on OPT, you are fine. Employer do not have to deduct FICA as long as your are in OPT. 3 Years - boy this looks fishy as you get only 1 year OPT. Talk to your HR and Payroll people and ask why it was not deducted.

Need more input from your payroll to answer your question.
 
F1 and H1B Taxes

I have just realized that I have a similar case, my H1B came thru in July 2001, but payroll still has me as F1-OPT. HR says that they will change my status going forward and that I should not declare the goof up since the company may be panalised and I\'ll have to bear the taxes. Do you think I should ignore it? Do you know if this may be a potential problem for my GC.....am currently in the process(tx,Fed DOl 1/11/02)Please advise.....

gcBug
 
gcbug: You Can\'t Ignore It.

Please read my response above. Of course you can\'t simply ignore the problem. It can be a problem even after your GC. And yes, your employer may have to pay a penalty. However, you shall only bear your portion of the taxes. Your employer is liable for these taxes and any penalties associated. Make arrangements to pay the required tax amount to payroll and have them match it, along with any penalties. Be sure to get a W2-C (corrected W2).

If payroll advised you to "not declare the goof up", you need to find another employer. The ultimate responsibility of paying taxes lies with you. If audited (by SSA, not IRS), you won\'t be able to make the excuse that payroll advised you to hush it up.
 
Company won\'t save you though...

You have to pay taxes to SSA anyway. Whether company is penalized or not is not your concern. You want to do what is required by law. If you are eligible for waiver, then you don\'t want to pay unnecessarily but such waivers are hard to find.

And it\'s not penalization. For every dollar an employee puts in FICA taxes, employer matches it with a dollar. so your 7.65% becomes twice that much. that\'s what the company will have to pay to the SSA in arrears with any penalty for late filing. but you gotta do what you gotta do.
 
I had a similar situation

when i first moved on to H1. after a few months i informed the payroll
and they started deducting the SS in chunks the following months.
 
I haven\'t ignored it!

Thanks for all your advise. I\'ve taken it up with my employer and they are preparing a W2-C for me. I\'m paying the arrears on my end and they\'ll do their bit I\'ve been told. I\'d rather sleep in peace...
Thanks again,
 
How come?

Is this your first year on H1? If not, how did you file your taxes? It should have been covered there?
 
You can avoid paying FICA (Social Sec. and medicare) taxes ONLY if...

you file an IRS form (forgot the number). You need to be a member of an approved religious organization who conscientiously believes against taking any public offerings, help, assistance, etc. So if you are a member of this group, you can probably save 7.65% of your salary. Otherwise not.

sounds like a business plan?? haha.
 
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