My employer overwithheld social security tax and is refusing to refund - need advice!

You're absolutely right about how this works. When a single employer (even with multiple W-2s) overwitholds Social Security tax, it's their responsibility to correct the issue - not the IRS's. What you need to do is escalate this within the company. Don't just stay with the HR representative you've been talking to. Ask to speak with their supervisor or the head of payroll. Be polite but firm, and make it clear that you understand the legal requirement that they fix this issue. Document everything. Keep records of all your communications with them - dates, names, what was discussed. Send follow-up emails after phone conversations to create a paper trail. If they continue to drag their feet, mention that you'll be contacting your state's Department of Labor or even filing a complaint with the IRS. Sometimes just mentioning this can motivate companies to act. You still have some time before the April deadline, but don't wait until the last minute. If they absolutely refuse to correct it by filing time, you might need to file an extension while you continue pursuing this with the employer.

I had similar issues last year trying to get my tax documents corrected and was getting nowhere with HR. I stumbled across this service called taxr.ai (https://taxr.ai) that analyzes your tax documents and helps you identify these kinds of issues. It's specifically designed to catch withhoding problems and will generate all the documentation you need to prove your case to your employer. I uploaded my W-2s, and it immediately flagged the overwithholding issue and created a detailed report that I could take back to HR. When they saw I had professional documentation backing up my claim, they suddenly got a lot more responsive! The service also walked me through exactly what forms I needed and what to say to get this resolved.

Just wanted to follow up here - I ended up trying taxr.ai after seeing the recommendation and it was actually super helpful. I was skeptical at first since my employer had already admitted there was a problem but wouldn't fix it. The service generated a formal notice that cited the exact IRS regulations and even included a timeline for when employers are required to issue corrections. I forwarded the documentation to the head of our payroll department (bypassing the unhelpful HR person I'd been dealing with), and it worked! They issued corrected W-2s within a week. The report made it clear they were legally obligated to fix this, and I think having that official-looking documentation made them realize I wasn't going to just give up and go away. Just wanted to share since it solved the exact problem I was having with getting them to actually issue the correction after they'd admitted the mistake.

If you're still having trouble getting through to your employer's payroll department, you might want to try using Claimyr (https://claimyr.com). I was in a similar situation last year and couldn't get a straight answer from my company. I ended up calling the IRS directly to find out exactly what my rights were, but kept getting stuck in their phone tree for HOURS. Claimyr basically calls the IRS for you and navigates all the phone menus, then calls you when they have an actual human IRS agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c When I finally got through to an IRS agent, they confirmed exactly what you said - that it's the employer's responsibility to fix this. But they also gave me specific information about what to do if the employer refuses, including filing Form 843 for a claim of refund. Having that official guidance directly from the IRS gave me leverage with my company's payroll department.

I need to apologize for being so skeptical earlier. After my last comment, I decided to give Claimyr a try since I was getting absolutely nowhere with either my employer or trying to reach the IRS myself. I'm honestly shocked at how well it worked. I got a call back in about 35 minutes with an actual IRS agent on the line. The agent confirmed everything about the employer's responsibility to fix overwithholding issues and gave me specific guidance on what to do next. Armed with this info directly from the IRS, I went back to my employer with a much stronger case. I specifically mentioned Form 843 and the potential for them to face penalties for incorrect reporting. Suddenly they were MUCH more responsive, and I got an email yesterday saying they're processing the correction. For anyone dealing with this social security overwithholding issue - getting that official word directly from the IRS really does make a difference when pushing your employer to act.

You might also want to check if this happened in previous years too! I had a similar situation and when I looked back at my old W-2s, I realized my employer had been doing this for THREE YEARS. They had to go back and correct all of them. Also, make sure you keep track of exactly how much was overwithheld. The social security tax cap for 2024 was $168,600, so anything withheld on earnings above that amount was incorrectly taken out. Calculate the exact amount they owe you so you can be specific in your request.

Has anyone successfully gotten their overwithholding refunded without getting corrected W-2s? My employer admitted they messed up but said they "can't" issue new W-2s because they already filed with the IRS. They offered to just cut me a check directly.

I'm dealing with this exact same issue right now! My employer also overwitheld Social Security tax because I hit the wage cap partway through the year, but they kept deducting from my paychecks anyway. One thing that helped me was calculating the exact amount they owe me and putting it in writing. For 2024, the Social Security wage base is $168,600, so any SS tax withheld on wages above that amount should be refunded. I made a simple spreadsheet showing my cumulative wages by pay period and highlighted exactly when I hit the cap and how much was incorrectly withheld after that point. I also found it helpful to reference IRS Publication 15 (Employer's Tax Guide) when talking to HR. Section 5 specifically covers the Social Security wage base and employer responsibilities. Having that official IRS publication number to cite made them take me more seriously. Don't let them drag this out - you're absolutely right that it's their legal responsibility to fix this, not yours. Keep escalating until you get to someone with actual authority to process the correction. Good luck!