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QUESTION DETAIL
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We under-withheld FICA tax for several employees. Unfortunately, many of our employees do not have the funds to pay their portion of the amount that is under-withheld. What should we do?
ANSWER
The BIDaWIZ Team's Answer:
The employer can technically remit payments on behalf of the employee as per Section 7 of IRS Publication 15-A. In this instance, the payment of the employee share of FICA tax by the employer is current wage compensation subject to FICA and income tax withholding and is reflected on the employee's year-end Form W-2.
References: Internal Revenue Code Section IRC 3102(f)(3) & IRS Publication 15-A, Section 7
