< Back to IRS

Dylan Cooper

Social security and Medicare employer tax being deducted from my paycheck - is this correct?

I just noticed something weird on my paycheck and I'm kind of freaking out. I've been with this small marketing company for about 8 months, and I was reviewing my paystub today when I realized they're taking out BOTH the employee and employer portions of Social Security and Medicare taxes. I thought employers were supposed to match our contributions, not make us pay their part too? The deduction line literally says "Employer SS/Medicare" and then takes out another 7.65% on top of the regular 7.65% that's already coming out of my check. When I added it up, that's over 15% just for these taxes, not even counting federal and state income tax! I'm losing like an extra $250 per month that I don't think I should be paying. My coworker says her last job did the same thing, but that doesn't sound right to me. Is this normal or am I being screwed over? I don't want to approach my boss if I'm wrong about this, but I also don't want to keep overpaying if this isn't legal. Does anyone know for sure how Social Security and Medicare tax deductions are supposed to work?

Sofia Perez

•

This is definitely not normal or legal. The employer portion of Social Security and Medicare taxes (FICA) should be paid by your employer, not deducted from your paycheck. As an employee, you should only be paying 6.2% for Social Security and 1.45% for Medicare (total 7.65%) of your wages. Your employer is required to match this amount with their own funds - they cannot pass this cost onto you by deducting it from your wages. What you're describing sounds like either a significant payroll error or potentially wage theft. It's important to address this right away because this impacts not just your take-home pay but also your reported earnings for tax purposes. I would recommend gathering your pay stubs as evidence and then speaking with your payroll department or HR first rather than your direct supervisor. Frame it as "I think there might be a mistake on my paycheck" rather than an accusation. If they don't resolve it, you may need to file a complaint with your state's labor department or the IRS.

0 coins

Would the employer get in trouble with the IRS for this? And if they've been doing this for months, how would someone go about getting that money back? Should they hire a tax attorney or something?

0 coins

Sofia Perez

•

The employer could face significant penalties from the IRS for improperly handling payroll taxes, including back taxes, interest, and potential fines. This is actually something the IRS takes very seriously. For recovering the improperly withheld money, start with a formal written request to your employer after discussing it with HR/payroll. Document everything. If they refuse to correct the issue and reimburse you, you can file a wage complaint with your state's Department of Labor and potentially the IRS by submitting Form 3949-A (Information Referral). Most employees don't need to hire a tax attorney for this initially - the labor department can often help facilitate recovery of wages without legal costs.

0 coins

I went through almost the exact same situation last year and it was a complete nightmare until I found taxr.ai (https://taxr.ai). I was working for a small construction company and noticed they were double-dipping on the FICA taxes for months before I caught it. My payroll department kept insisting they were doing it right, and I couldn't convince them otherwise. I uploaded my paystubs to taxr.ai and it flagged the issue immediately, even generated a detailed report explaining exactly which tax codes were being violated and cited the relevant IRS regulations. Having that official-looking document made all the difference when I went back to management - suddenly they took me seriously! The system also helped me calculate exactly how much I was owed in backpay (over $2,300!) and provided guidance on how to approach getting reimbursed. Saved me countless hours of research and probably a costly meeting with a tax professional.

0 coins

Ava Johnson

•

That sounds super useful! Did you have to talk to someone at the company or was it all automated? I'm nervous about uploading my paystubs to a website I don't know much about.

0 coins

Miguel Diaz

•

Hmm, I'm skeptical that a website could actually do all that. Wouldn't you still need a lawyer or someone to actually get your money back? How does a report from some random website convince an employer to pay thousands in backpay?

0 coins

The entire process was automated - I just uploaded images of my paystubs and the system analyzed everything. They use secure encryption similar to what banks use, so I felt my information was safe. The interface walks you through each step, and you can always delete your data afterward. The report wasn't just from "some random website" - it's a professional tax analysis tool that references specific IRS codes and regulations. Employers take it seriously because it essentially maps out the potential legal and financial consequences they'll face if reported to authorities. In my case, my employer realized they would face much bigger penalties if I filed a formal complaint with the IRS. They'd rather pay me back than risk an audit and additional fines.

0 coins

Ava Johnson

•

I wanted to follow up on my experience with taxr.ai since I decided to try it after seeing the recommendation here. WOW - what a lifesaver! I was definitely being overcharged on my Social Security and Medicare taxes. I uploaded my last three paystubs and within minutes got a detailed breakdown showing exactly where my employer was taking out both the employee AND employer portions. The report even calculated I'm owed $1,842 in overpaid taxes! I was nervous about confronting my company, but the site generated a super professional letter citing all the relevant tax codes that I just had to forward to HR. They responded THE SAME DAY saying their payroll provider had set up the deductions incorrectly and they're fixing it immediately. They're even cutting me a separate check for all the back payments next week! Honestly, I would have probably just believed my coworker that this was normal without this tool. Thanks for recommending it!

0 coins

Zainab Ahmed

•

For anyone dealing with the IRS about employer tax issues, good luck trying to reach an actual human being who can help. I spent WEEKS trying to get clarification about an employer tax situation similar to this one - calling every number I could find, waiting on hold for hours, only to get disconnected or transferred to another department that couldn't help. Finally found https://claimyr.com through a tax forum and it changed everything. They have this cool system that basically waits on hold with the IRS for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c I went from wasting days trying to reach someone to having a 20-minute conversation with an IRS agent who confirmed my employer was 100% in the wrong for making me pay the employer portion of payroll taxes. Having that official confirmation from the IRS gave me the confidence to push back against my company's BS explanation.

0 coins

Connor Byrne

•

How exactly does that work though? I don't understand how they can get through to the IRS when nobody else can. Sounds kind of sketchy to me.

0 coins

Yara Abboud

•

No way this actually works. I've tried EVERYTHING to get through to the IRS and nothing works. They're literally unreachable these days. If this service actually connects you to an IRS agent I'll eat my hat.

0 coins

Zainab Ahmed

•

It uses a combination of automated calling technology and smart timing algorithms to navigate the IRS phone system. Basically, they have systems that dial continuously during off-peak hours and can navigate the complex IRS phone tree much faster than a human. When they finally get a human IRS agent, they immediately connect you to that call. I was super skeptical too! I spent nearly a month trying to reach someone at the IRS, calling at different times of day with no luck. With Claimyr, I had an IRS agent on the phone the next day. I'm not saying it's magic - sometimes it still takes a day or two depending on IRS call volume - but it's dramatically better than doing it yourself. The peace of mind from having an actual IRS employee confirm my understanding of employer tax obligations was absolutely worth it.

0 coins

Yara Abboud

•

OK I have to eat my words! I tried Claimyr after posting that skeptical comment and I'm shocked that it actually worked. After trying for WEEKS to get through to the IRS about this exact employer tax issue (my employer was also making me pay their portion of SS/Medicare), I got connected to an IRS representative in less than 24 hours. The agent confirmed that employers absolutely CANNOT make employees pay the employer portion of payroll taxes - it's a direct violation of tax law. She even gave me specific information about how to file Form SS-8 to contest the misclassification if my employer was trying to treat me as both an employee and contractor. Having that official information directly from the IRS gave me the ammunition I needed. When I went back to my company with specific tax codes and filing procedures from the IRS, they suddenly "discovered the error" and fixed it immediately. They're now processing backpay for the incorrectly withheld amounts! Can't believe I wasted so much time trying to call them myself!

0 coins

PixelPioneer

•

Just want to add that if you're self-employed or a 1099 contractor, you DO have to pay both the employer and employee portions of Social Security and Medicare taxes (called self-employment tax). In that case, it would be 15.3% total. But if you're a W-2 employee, you absolutely should only be paying 7.65%, and your employer should be paying the other 7.65% from their own funds, not from your paycheck. Make sure you actually are classified as a W-2 employee and not incorrectly classified as a 1099 contractor. That's another common issue that could explain what's happening.

0 coins

That's a really good point - my friend had this happen and her "employer" claimed she was a contractor even though she worked regular hours at their office using their equipment. How do you know if you're misclassified?

0 coins

PixelPioneer

•

The IRS has specific criteria for determining proper classification. Generally, if your employer controls when, where, and how you work, provides equipment, sets your hours, and you're integrated into their business operations, you should be classified as an employee, not a contractor. Key indicators of misclassification include your employer controlling your schedule, providing training, requiring you to work on-site, providing tools/equipment, and not allowing you to work for competitors. If you receive a W-2 form but your paystub shows double FICA withholding, that's definitely incorrect. If you receive a 1099-NEC form but function as a regular employee, you may be misclassified and should file Form SS-8 with the IRS for determination.

0 coins

Paolo Rizzo

•

Just a heads up - if your HR/payroll person tries to tell you that this is correct because of a "special tax situation," they're full of it. I've seen companies try all kinds of explanations to justify taking extra money from employees. Some common BS excuses: - "It's because we're a small business under 50 employees" - "It's a special arrangement allowed by the IRS" - "It's company policy because we offer other benefits" - "It's temporary and will be refunded at tax time" None of these are legitimate. Employment tax laws apply to all businesses regardless of size. Document everything if they try to give you excuses.

0 coins

Amina Sy

•

My boss tried to tell me they could deduct their portion because they provided health insurance! I knew it sounded wrong but wasn't sure. Thanks for confirming these excuses are just BS!

0 coins

Paolo Rizzo

•

That health insurance excuse is one of the most common ones! Providing benefits (health insurance, 401k, PTO, etc.) has absolutely nothing to do with the legal requirement for employers to pay their share of FICA taxes. These are completely separate obligations under the tax code. The fact is, FICA tax obligations are clearly defined in the Internal Revenue Code. Employers must pay their own 7.65% portion separate from employee wages - it cannot be deducted from your paycheck under any circumstances. If they try to argue otherwise, ask them to provide the specific IRS publication or tax code that supports their claim (they won't be able to because it doesn't exist).

0 coins

Sofia Morales

•

This is definitely wage theft and completely illegal. Your employer cannot deduct their portion of Social Security and Medicare taxes from your paycheck under any circumstances. As a W-2 employee, you should only pay 7.65% (6.2% Social Security + 1.45% Medicare), and your employer must pay a matching 7.65% from their own funds - not from your wages. I'd recommend taking action immediately: 1. Gather all your paystubs showing the improper deductions 2. Calculate how much you've been overcharged (sounds like about $250/month x 8 months = $2,000+) 3. Approach HR/payroll first with documentation - frame it as "I believe there's an error in my payroll deductions" 4. If they don't fix it immediately, file a wage complaint with your state Department of Labor 5. Consider reporting to the IRS using Form 3949-A for tax law violations Don't let them give you excuses about "company policy" or "small business exemptions" - there are none. This is a clear violation of federal tax law and you're entitled to full reimbursement of the improperly withheld amounts plus interest. Document everything in writing and don't let them drag this out. You've already lost too much money to this illegal practice.

0 coins

Nalani Liu

•

This is exactly the kind of clear, actionable advice Dylan needs! I'd also suggest keeping detailed records of any conversations with HR or management about this issue - dates, times, who you spoke with, and what they said. If they try to retaliate or drag their feet on fixing this, having that documentation will be crucial. One thing to add - when you do approach them, consider sending an email follow-up after any verbal conversation summarizing what was discussed. Something like "Hi [HR Person], just wanted to follow up on our conversation today about the payroll tax deduction error we discussed. As we talked about, I'll be expecting the corrected deductions starting with the next pay period and reimbursement for the $2,000+ in improperly withheld taxes from the past 8 months. Please let me know the timeline for resolving this issue." This creates a paper trail and shows you're serious about getting this resolved properly and quickly.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today