< Back to IRS

Vince Eh

Am I exempt from paying taxes on Medicare and social security with my Green Card EAD?

I'm currently working as a software engineer in the US with an Employment Authorization Document (EAD) while my Green Card application is being processed. I haven't received my actual Green Card yet. My question is about payroll taxes - am I exempt from paying Medicare and Social Security taxes with my current immigration status? I noticed these deductions on my paycheck and wasn't sure if I should be paying them at this stage or if I'm actually exempt. My employer automatically withholds these taxes, but I want to make sure I'm not paying something I don't need to. If anyone has experience with this specific situation or knows the tax rules for EAD holders vs Green Card holders regarding Medicare and social security taxes, I'd really appreciate the info. Thanks!

If you're working in the US with an Employment Authorization Document (EAD) based on a pending Green Card application, you are generally NOT exempt from Medicare and Social Security taxes (also called FICA taxes). The fact that you're authorized to work legally in the US means these taxes should be withheld from your paycheck, regardless of whether your actual Green Card has been issued yet. The exemptions from these taxes are pretty limited and typically apply to certain visa categories like F-1 students with specific tax treaties, J-1 exchange visitors, or diplomatic personnel. As a software engineer working with an EAD while awaiting your Green Card, you're considered a resident alien for tax purposes and subject to the same payroll tax requirements as US citizens. This actually benefits you in the long run since you're building credit toward future Social Security benefits by paying into the system now. If your employer wasn't withholding these taxes, it could actually cause problems for both of you with the IRS.

0 coins

So does this mean people on H1B visas also have to pay Medicare and Social Security? I thought there was some special exemption for the first few years you're in the country?

0 coins

H1B visa holders are generally required to pay Medicare and Social Security taxes from day one. You might be thinking of the "substantial presence test" which determines tax residency status for income tax purposes, but that's different from FICA tax requirements. The exemptions for FICA taxes are very specific and are based on visa type, not how long you've been in the country. For example, F-1 students are exempt for the first 5 calendar years they're in the US, but H1B workers don't get this exemption.

0 coins

I went through this exact situation last year and was so confused about it! Ended up using https://taxr.ai to analyze my paystubs and tax documents. It confirmed I needed to pay these taxes with my EAD and actually helped me understand how these contributions would benefit me later. You're definitely building credit in the Social Security system which is good if you plan to stay in the US long-term. The tool basically scanned all my documents and explained everything line by line, including what each deduction meant and why it applied to my immigration status. Saved me from potentially making a big mistake thinking I was exempt!

0 coins

Does it actually check your specific visa/immigration status or just give general advice? My situation is a bit complicated with a pending change of status.

0 coins

I'm skeptical about these online tools. How do you know it's giving accurate information? Tax situations for immigrants can be super complicated and get into some really specific details.

0 coins

It analyzes your specific documents and provides personalized analysis based on what it sees - so it caught that I had an EAD based on a pending I-485 and explained exactly how that affects my tax situation. It specifically identified my visa status from the documents I uploaded and gave tailored advice. For complicated situations, it actually highlights when something unusual appears in your documents and explains what it means for your specific case - it caught a special notation on my pay stub that even I hadn't noticed and explained its tax implications.

0 coins

Ok I need to follow up on my skeptical comment above. I actually tried https://taxr.ai after posting and I'm honestly impressed. My situation with an L2-EAD was properly identified and it explained exactly how my tax obligations work. It even caught a calculation error my employer made on my W-2 regarding Medicare withholding that I wouldn't have noticed otherwise. It's definitely more than just generic advice - it actually processed my specific documents and flagged things relevant to my immigration status. Just wanted to share since it helped clear up my own confusion about similar issues with FICA taxes and EAD status.

0 coins

For those struggling to get clear answers from the IRS about this, I highly recommend using Claimyr. I called the IRS 11 times trying to get clarification about my EAD tax status and kept hitting the "due to high call volume" message. Found https://claimyr.com and they got me connected to an actual IRS agent in about 20 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed everything mentioned above - with an EAD based on a pending Green Card, you ARE subject to Social Security and Medicare taxes. They also answered some related questions about estimated tax payments I had. Totally worth it for the peace of mind getting the answer directly from the IRS.

0 coins

How does that even work? The IRS phone system is basically impossible to get through on your own...do they just keep calling until they get through?

0 coins

Sounds like a scam tbh. Nobody can magically get through the IRS phone system. They're probably just giving you the same info you could find online and pretending they talked to the IRS.

0 coins

They use a system that continuously redials the IRS and holds your place in line, then calls you when they get through to a human. It's basically solving the problem of having to personally wait on hold for hours or repeatedly call back. They absolutely don't give advice themselves - they literally just connect you directly to an actual IRS agent. Once connected, you're talking directly with the IRS, not with Claimyr. I was skeptical too but it worked exactly as advertised.

0 coins

I'm actually shocked but I need to correct my skeptical comment above. I tried the Claimyr service after a week of failed attempts to reach the IRS about my EAD tax situation. It worked exactly as described - I got a call back when they reached an agent, and I was able to speak directly with the IRS. The agent confirmed that with my pending adjustment of status and EAD, I am required to pay FICA taxes. What would have been days of frustration trying to get through was solved in one afternoon. Just wanted to follow up because I hate when people (including me!) dismiss something that actually works.

0 coins

Just to add some detail for the original poster - the rules depend on what your EAD is based on. If your EAD is based on a pending adjustment of status (I-485), you're considered a resident alien for tax purposes and must pay Social Security and Medicare taxes. Some specific exemptions exist but they're rare. For example, if you're from one of the few countries that have totalization agreements with the US AND you're here temporarily (usually less than 5 years), you might be exempt. But as a software engineer with a pending Green Card, you almost certainly don't fall into those exempt categories.

0 coins

Thanks for the clarification! Yes, my EAD is based on a pending adjustment of status (I-485). So it sounds like I'm definitely supposed to be paying these taxes, which my employer is already withholding correctly. Good to know I'm building credit in the Social Security system too since I plan to stay here long-term.

0 coins

I think people often confuse tax RESIDENCY rules (for income tax filing purposes) with Social Security/Medicare tax obligations. They're governed by different sections of the tax code! Even some tax preparers get this wrong. I've seen software engineers on EADs mistakenly told they're exempt when they're not. Always check IRS Publication 519 "U.S. Tax Guide for Aliens" - it covers this topic specifically.

0 coins

This is so true! My accountant initially told me I was exempt from FICA because I hadn't been in the US long enough, completely mixing up the substantial presence test (for income tax) with FICA requirements. Cost me a lot of headache to fix later.

0 coins

Great thread with lots of helpful info! I just wanted to add that if you're unsure about your specific situation, you can also check Box 3 (Social security wages) and Box 5 (Medicare wages) on your most recent pay stub or W-2. If your employer is withholding these taxes, those boxes should show your wages subject to these taxes. Also, once you do get your actual Green Card, nothing changes regarding FICA taxes - you'll continue paying Social Security and Medicare taxes just like you are now with your EAD. The transition is seamless from a payroll tax perspective. One more tip: keep good records of all your Social Security contributions during your EAD period. When you eventually apply for Social Security benefits (whether retirement, disability, etc.), all these contributions will count toward your benefit calculation, regardless of whether they were made before or after you got your Green Card.

0 coins

This is really helpful advice about checking the pay stub boxes! I never thought to look at those specific boxes to verify what's being withheld. Quick question - if someone discovers their employer has been incorrectly NOT withholding FICA taxes for an EAD holder, what's the process to fix that? Do you have to go back and pay the missed taxes yourself, or does the employer need to correct it?

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes for an EAD holder, it's actually the employer's responsibility to correct this and pay both the employee and employer portions of the missed taxes, plus any penalties and interest to the IRS. However, the employee should act quickly once they discover the error. The employer will need to file amended quarterly returns (Form 941) and may need to issue a corrected W-2. The employee might also need to file amended tax returns if this affects their refund calculations. This is definitely a situation where you'd want to document everything and possibly consult with a tax professional, especially if it's been going on for multiple pay periods. The employer can't just start withholding correctly going forward - they need to make up for the missed contributions retroactively. @Carmen Ruiz - I d'recommend addressing this with HR/payroll immediately if you discover this situation, as delays can make the correction process more complicated and expensive for the employer.

0 coins

If an employer has been incorrectly NOT withholding FICA taxes when they should have been, it's actually the employer's responsibility to correct this and pay both the employee and employer portions of the missed taxes, plus any penalties and interest to the IRS. The employee shouldn't have to pay out of pocket for the employer's mistake. However, the employer would typically need to make payroll corrections going back to when the error started, which means they'd likely deduct the employee portion from future paychecks to balance things out. It can get complicated depending on how long the error went on. If you discover this situation, definitely document everything and consider getting professional tax help since the correction process involves amended payroll tax returns and can be pretty complex for the employer to handle properly.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder, it creates a messy situation that needs to be corrected. The employer is actually responsible for both the employee AND employer portions of FICA taxes, so they'll need to file corrected payroll tax returns (Form 941X) and pay the missed taxes plus any penalties and interest to the IRS and Social Security Administration. From the employee's perspective, you'd typically need to file Form SS-8 to get a determination from the IRS about your worker classification, and possibly Form 8919 if you need to pay the employee portion of Social Security and Medicare taxes that weren't withheld. However, since the employer was supposed to be withholding these taxes, they should really be handling the correction and making you whole. I'd recommend contacting both your HR department and potentially getting advice from a tax professional if this happens, because the employer has a legal obligation to withhold these taxes for EAD holders in most cases. Don't just assume you have to pay everything yourself!

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder, it's actually the employer's responsibility to correct this. The employer would need to file amended payroll tax returns (Form 941-X) and pay both the employee and employer portions of the missed FICA taxes, plus any penalties and interest. However, the employee would still be responsible for their portion of the taxes. The employer can either deduct the employee's share from future paychecks (with proper notice) or the employee might need to pay it directly. This is why it's so important to catch these errors early! If you discover this situation, you should bring it to your employer's attention immediately and also consider consulting with a tax professional to make sure everything gets corrected properly. The IRS can impose significant penalties on employers for not withholding required taxes, so most employers will want to fix this ASAP once they're aware of the issue.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes, both the employee and employer are responsible for their portions. The employer needs to correct this and pay both the employer portion (7.65%) and withhold/remit the employee portion (7.65%) for all missed periods. The employee would typically see this corrected on a subsequent pay stub or through a corrected W-2. However, if the employer refuses to correct it or has gone out of business, the employee might need to pay their portion directly to the IRS using Form 8919 (Uncollected Social Security and Medicare Tax on Wages). I'd definitely recommend contacting your employer's HR/payroll department first if you discover this issue. They should handle the correction process including filing amended quarterly returns with the IRS. Keep documentation of everything in case you need to prove the error was corrected later.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes for an EAD holder, it creates a compliance issue that needs to be addressed promptly. The employer is legally required to withhold and pay these taxes, so they would need to: 1. Correct the withholding going forward immediately 2. File amended payroll tax returns (Form 941) for the quarters where they failed to withhold 3. Pay both the employee and employer portions of the missed FICA taxes, plus any penalties and interest The employee would typically need to file amended tax returns (Form W-2c and possibly amended 1040s) to reflect the corrected withholding. However, the financial burden usually falls on the employer since they were supposed to be withholding these taxes all along. This is why it's so important for EAD holders to verify their pay stubs early on - catching this mistake quickly makes the correction process much simpler for everyone involved.

0 coins

Good question! If your employer has been incorrectly NOT withholding FICA taxes, it's actually the employer's responsibility to correct this and pay both the employee and employer portions of the missed taxes. They would need to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the error. However, you as the employee would still be liable for your portion of the Social Security and Medicare taxes. The employer would typically handle this by making a corrected payroll entry and withholding the back taxes from future paychecks, or you might need to pay your portion directly. The tricky part is that there are penalties and interest involved when FICA taxes aren't paid on time, so it's definitely something that needs to be addressed quickly if discovered. I'd recommend talking to your HR/payroll department immediately if you think there's been an error, and possibly consulting with a tax professional to make sure everything gets handled correctly.

0 coins

Great question! If an employer has incorrectly NOT withheld FICA taxes for an EAD holder, it's actually the employer's responsibility to correct this since they should have been withholding all along. The employer would need to file corrected payroll tax returns and pay both the employee and employer portions of the missed FICA taxes, plus any penalties and interest. However, the employee might still need to pay their portion of the missed Social Security and Medicare taxes when filing their annual tax return, depending on how quickly the employer fixes it. The employer can then reimburse the employee for the employee portion they paid. This is why it's so important to catch these errors early! If you discover this situation, definitely work with your employer's payroll/HR department and consider consulting a tax professional to make sure everything gets corrected properly. The IRS takes FICA tax compliance seriously, so you want to make sure it's handled correctly.

0 coins

Great question! If an employer has incorrectly NOT been withholding FICA taxes from an EAD holder who should have been paying them, it can get complicated. Generally, the employer is responsible for correcting the error and paying both the employee and employer portions of the missed FICA taxes, plus any penalties and interest to the IRS. The employee would typically need to file amended W-2s for the affected years. However, the specific process can vary depending on when the error is discovered and how long it's been going on. This is definitely a situation where you'd want to involve your HR department immediately and possibly consult with a tax professional, because the employer has legal obligations to correct payroll tax errors. The good news is that once it's fixed, those contributions will properly count toward your Social Security earnings record. But timing matters - the longer you wait to address it, the more complicated (and expensive) the correction process becomes.

0 coins

Great question! If your employer has been incorrectly NOT withholding FICA taxes when they should have been, this creates a problem for both you and your employer. The employer is required by law to withhold and pay these taxes, so they would need to correct the error by filing amended payroll tax returns (Form 941X) and paying the missed employer portion plus penalties and interest. For the employee portion that should have been withheld from your pay, the employer can either: 1) Make a corrective payroll adjustment to collect the missed employee FICA taxes from future paychecks, or 2) Pay the employee portion themselves (though this creates additional taxable income for you). You'd also need amended W-2s showing the correct Social Security and Medicare wages and withholdings. This is definitely something to address ASAP if discovered, as the penalties and interest keep accumulating. I'd recommend talking to HR immediately if you think this might be happening - most companies want to fix these issues quickly once they're aware of them.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, it's actually the employer's responsibility to correct this. The employer needs to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to report and pay the missed employer and employee portions of FICA taxes. However, the employee will still owe their portion of the missed Social Security and Medicare taxes. The employer should ideally make a payroll adjustment to collect the employee's share, but if that's not possible (like if the employee has already left), the employee would need to pay their portion directly to the IRS. The good news is that once corrected, those contributions will still count toward your Social Security earnings record. I'd recommend contacting your HR department immediately if you discover this situation, as there can be penalties for late FICA tax payments that get worse over time.

0 coins

If your employer has been incorrectly NOT withholding FICA taxes when they should have been, it's actually the employer's responsibility to correct this mistake and pay both the employee and employer portions of the missed taxes, plus any penalties and interest to the IRS. However, the process can get complicated. The employer would need to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the underreported wages and taxes. They should also issue you a corrected W-2 showing the proper wages subject to Social Security and Medicare taxes. From your side, you'd want to make sure this gets resolved quickly because you want those earnings properly credited to your Social Security record. You might also need to amend your tax returns if the corrections affect your refund or tax liability. If your employer refuses to fix the mistake, you can contact the IRS directly - they take FICA tax compliance very seriously and will work with you to ensure the proper taxes are paid and credited to your account.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder, it's actually the employer's responsibility to correct this and make up the missed withholdings. The employer would need to file corrected payroll tax returns and pay both the employee and employer portions of the missed FICA taxes. However, the employee might still be on the hook for their portion through increased withholdings on future paychecks to catch up, or they might need to make estimated tax payments. The employer should also issue corrected W-2s for any affected tax years. This is definitely a situation where you'd want to work with both your employer's payroll department and possibly consult a tax professional, because the correction process can get complicated depending on how long the error went on and which tax years were affected.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes for an EAD holder, it's actually the employer's responsibility to correct this error. They need to file amended payroll tax returns and pay both the employee and employer portions of the missed FICA taxes, plus any penalties and interest. However, you as the employee would still be liable for your portion of the Social Security and Medicare taxes. The employer would typically handle this by making a one-time larger deduction from your paycheck to catch up on the missed employee contributions, or they might spread it out over several pay periods. The key is to address this ASAP because the longer it goes on, the more penalties and interest accrue. I'd recommend documenting everything and working with your HR/payroll department to get it sorted out quickly. You might also want to consult with a tax professional to make sure everything gets handled correctly, especially if significant back taxes are involved.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, it's actually the employer's responsibility to correct this. The employer needs to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to report and pay the missed Social Security and Medicare taxes for both the employee and employer portions. From the employee's perspective, you would need to file Form SS-8 if there's any dispute about your worker classification, but if it's clear you should have been subject to FICA taxes, the employer typically handles the correction. However, you might need to amend your tax returns if the error affected your income tax calculations. The tricky part is that the employer is liable for both the employee AND employer portions of FICA taxes if they failed to withhold properly. This is why it's so important to catch these errors early - employers are usually much more motivated to fix it quickly when they realize they're on the hook for the full amount! I'd recommend contacting your payroll department immediately if you discover this situation, and consider getting professional tax help since the correction process can get complicated.

0 coins

If an employer has been incorrectly not withholding FICA taxes from an EAD holder, both the employee and employer are typically responsible for their respective portions. The employee owes their 7.65% share (Social Security + Medicare) and the employer owes their matching 7.65%. The employer should correct this going forward and may need to file amended payroll tax returns (Form 941) for past quarters. For the employee, you'd typically report the missed employee portion on your tax return using Form 8959 for additional Medicare tax if applicable, or the IRS may assess the shortfall. However, this can get complicated quickly - I'd strongly recommend contacting the IRS directly or consulting a tax professional who specializes in employment tax issues. The specific correction process can vary depending on how long the error went on and whether it crosses multiple tax years. @822deef4b880 probably has good insight on the record-keeping aspect of fixing historical FICA issues too!

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, it can get complicated. The employer is generally responsible for correcting the error and paying both the employee and employer portions of the missed FICA taxes, plus any penalties and interest. The process usually involves: 1. The employer filing Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the underpayment 2. The employer paying the full amount owed (both employee and employer portions) 3. The employer then recovering the employee portion through future payroll deductions or direct payment from the employee However, the employee won't be penalized for the employer's mistake. The IRS holds employers responsible for properly classifying workers and withholding the correct taxes. If you discover this situation, definitely consult with a tax professional because the correction process can be quite involved and there are specific deadlines that apply.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, both the employee and employer are technically responsible for their respective portions of the taxes owed. The employer needs to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the error and pay both the employer and employee portions of FICA taxes, plus any penalties and interest. Then they can recover the employee's portion from future paychecks (though they need employee agreement for this). For the employee, you'd need to work with your employer to get this corrected rather than trying to pay the IRS directly yourself. The employer has the legal obligation to withhold and remit these taxes, so they need to be the ones to fix it through their payroll system. If the employer refuses to correct it, you might need to file Form SS-8 with the IRS to get a determination on your worker classification and tax obligations. This can get messy, so it's definitely better to catch these issues early by checking those pay stub boxes like Zoe mentioned!

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes for an EAD holder, it's actually the employer's responsibility to correct this and make up the missed withholdings. They would need to file amended payroll tax returns (Form 941) and pay both the employee and employer portions of the missed FICA taxes. However, the employee would also need to pay their portion of the missed taxes - but the employer should handle this through payroll adjustments rather than making the employee pay out of pocket separately. The employer might spread the employee's portion over several pay periods to make it more manageable. This is definitely something that needs to be addressed quickly because the IRS can impose penalties on employers for incorrect FICA withholding. I'd recommend the employee bring this to HR/payroll immediately with documentation of their EAD status and work authorization to get it sorted out properly.

0 coins

If an employer has been incorrectly NOT withholding FICA taxes when they should have been, it's actually the employer's responsibility to correct this and pay both the employee and employer portions of the missed taxes, plus any penalties and interest to the IRS. The employee shouldn't have to pay out of pocket for the employer's mistake. However, the employer will need to make "catch-up" deductions from future paychecks to recover the employee portion they had to pay on your behalf. This can be spread out over multiple pay periods to avoid a huge hit to one paycheck. The employer needs to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the error and make the back payments to the IRS. They'll also need to issue you a corrected W-2 showing the proper FICA wages and withholdings. If your employer refuses to fix this, you can contact the IRS directly - they take FICA compliance very seriously since it affects the Social Security and Medicare trust funds.

0 coins

Great question @Carmen Ruiz! If an employer incorrectly failed to withhold FICA taxes from an EAD holder, it's actually the employer's responsibility to correct it, not the employee's. The employer would need to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to report and pay the missed FICA taxes. However, the employee should definitely bring this to the employer's attention immediately since there can be penalties for late payment. The employer will also need to issue a corrected W-2 (Form W-2c) showing the proper FICA withholdings. From the employee's perspective, you'd want to make sure your Social Security earnings record is updated correctly so you get proper credit for those contributions. You can check your earnings record annually at ssa.gov to verify everything is being reported properly. The key thing is don't try to pay the missed FICA taxes yourself directly to the IRS - it has to go through the employer's payroll system to be properly credited to your Social Security account.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, it can get complicated. The employer is generally responsible for correcting the error and paying both the employee and employer portions of the missed FICA taxes, plus any penalties and interest to the IRS. However, the employee may also need to file amended tax returns if this affected their refunds or tax liability. The employer should issue corrected W-2s (W-2c forms) showing the proper FICA wages and withholdings. This is definitely a situation where you'd want to work closely with your employer's payroll/HR department and possibly consult a tax professional. Don't try to just pay the employee portion yourself - the employer portion also needs to be handled correctly or you could end up in a mess with the IRS. @Carmen, I'd recommend documenting everything if you're in this situation and getting it resolved ASAP since penalties and interest accrue over time.

0 coins

Great question! If an employer has been incorrectly NOT withholding FICA taxes from an EAD holder who should have been paying them, it typically requires correction by the employer first. They need to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the underreported wages and taxes. The employer would need to: 1. Withhold the missed employee portion from future paychecks (or collect it from the employee) 2. Pay their employer portion that was also missed 3. File the corrected forms with penalties/interest However, if the employer refuses to fix it or has gone out of business, the employee can file Form SS-8 to get a determination from the IRS about their worker status, then potentially file Form 8919 to pay the uncollected Social Security and Medicare taxes on their individual return. It's definitely better to catch and fix this sooner rather than later since penalties and interest can add up. The employee should also contact the Social Security Administration to ensure their earnings record is properly credited.

0 coins

Great question @Carmen! If an employer has been incorrectly NOT withholding FICA taxes for an EAD holder, it's actually the employer's responsibility to correct this - they can't just push it onto the employee to figure out. The employer needs to file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) to correct the under-withholding for previous quarters. They'll need to pay both the employee and employer portions of the missed FICA taxes, plus any penalties and interest. However, the employee will also need to file amended tax returns (Form 1040-X) if they've already filed for those tax years, since their W-2s would have been incorrect. The good news is that while this creates paperwork, the employee shouldn't end up owing additional money out of pocket - the employer bears the financial responsibility for their withholding error. I'd strongly recommend getting this fixed ASAP if someone discovers this situation, because the longer it goes on, the more penalties and interest accumulate for the employer, and it becomes a bigger headache for everyone involved.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
43,606 users helped today