Previous employer didn't withhold FICA from my paychecks - am I responsible for penalties & fees?

15 This is unfortunately more common than you'd think. Your employer definitely messed up here. Let me clarify how FICA responsibilities work: The employer is legally required to withhold the employee's portion of FICA taxes (7.65% of your wages) from your paycheck AND pay the matching employer portion (another 7.65%). They're also responsible for timely depositing these amounts with the government. You ARE responsible for your portion of the FICA taxes that should have been withheld. However, you are NOT legally responsible for: - Their employer portion - Penalties for late payment/filing - Interest charges - Their "amendment processing fee" The IRS considers the employer 100% responsible for penalties resulting from their failure to properly withhold. The company made the mistake and they're responsible for fixing it correctly. That said, if you continue working with them directly, get everything in writing. If they're suggesting you pay anything beyond your original FICA portion, they're trying to shift their legal responsibility onto you.

7 I went through something so similar last year that had me pulling my hair out! My old company screwed up my withholding for two years, and I was getting nowhere with their HR department. The tool that saved me was taxr.ai (https://taxr.ai) - it analyzes your tax documents and employment history to find exactly these kinds of issues. It flagged my missing FICA contributions immediately and gave me a detailed report breaking down my actual liability versus what the company was responsible for. The best part was the document generator that created a formal notice I could send to both my ex-employer and the IRS explaining the situation with all the right legal language. My former employer backed down right away when they received the properly formatted documentation showing they were trying to pass their penalties onto me illegally.

12 I just wanted to follow up here. Despite being skeptical initially, I ended up trying taxr.ai after continuing to get nowhere with my former employer. I was really surprised by how thorough it was. The system identified that I was only responsible for $4,200 of what my employer was trying to charge me as $11,000. The documentation it generated clearly cited the relevant IRS regulations showing that employers are 100% responsible for penalties from their withholding errors. I sent the formal notice to my old company and copied it to my regional IRS office. Two days later, my ex-employer's tone completely changed. They sent me a corrected statement asking only for my portion of the FICA taxes and apologized for the "confusion." Worth every penny just to have this resolved without having to hire an attorney.

9 If you're still struggling with getting your employer to cooperate, you might need to speak directly with the IRS. The problem is actually GETTING THROUGH to someone who can help. I spent 3 months trying to reach a human at the IRS about my employer's FICA mistakes. I finally used Claimyr (https://claimyr.com) and it completely changed the game. They have a system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally got through to an IRS employment tax specialist, they explained exactly what my rights were and sent me the forms to report my employer's error. The IRS then contacted my employer directly, and suddenly they were super cooperative about fixing their mistake without trying to pass their penalties onto me.

5 I need to admit I was completely wrong about Claimyr. After being skeptical, I tried it yesterday out of desperation after my 4th attempt to reach the IRS employment tax department failed. The service called me back about 2 hours after I signed up, and suddenly I was talking to an actual IRS agent who specialized in employer FICA tax issues. She walked me through exactly what forms I needed (Form SS-8 and Form 8919) and confirmed what others here said - I only owe my portion of the FICA taxes, and the employer is 100% responsible for all penalties and their matching portion. The agent even offered to send a notice to my former employer about their obligations! Definitely worth it just to get clear information directly from the IRS instead of trusting what my former employer was telling me.

17 I'm a little late to this thread, but I went through this exact same situation in 2023. My employer hadn't withheld FICA for nearly 2 years, claiming I was an "independent contractor" even though I was clearly an employee. One important thing nobody mentioned yet: make sure you request a Social Security Statement online at ssa.gov to verify that these missing years get properly credited once this is resolved. It takes time for corrections to show up in the SSA system, and you don't want this affecting your future benefits. Also, keep detailed records of all communications with your former employer about this issue. If they're already trying to make you pay for their mistake, they might not properly report the corrections to the SSA even after you pay your portion.

6 Quick question - has anyone actually dealt with the IRS directly on this kind of issue? I'm in a similar situation (employer didn't withhold for 1 year claiming I was exempt), and I'm wondering if I should just bypass my former employer entirely and go straight to the IRS?

This is a frustrating situation that unfortunately many employees face. Your employer made a significant error, and you're absolutely right to question their attempt to make you responsible for their penalties. Here's what you need to know: You are only legally responsible for YOUR portion of FICA taxes (7.65% of your wages for those 3 years). You are NOT responsible for: - The employer's matching portion (another 7.65%) - Any penalties or interest charges - Their processing fees The employer is required by law to withhold and remit FICA taxes, and when they fail to do so, they're responsible for all penalties and interest that result from their error. My recommendation is to document everything in writing with your former employer. Give them a reasonable deadline (like 30 days) to provide you with a corrected statement showing only your portion of the taxes owed. If they refuse, you can file Form 8919 with your next tax return to pay your portion directly to the IRS, and let the IRS handle collecting the employer's portion and penalties. Don't let them intimidate you into paying for their mistake. The law is clear on this issue.