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Medicare tax -- Question about payroll withholding

drsck
Every couple of years, I get a statement from Social Security showing the status of my account. Essentially, it's what I've paid in over the years. When this statement first started arriving more than 20 years ago, I noticed that lots of the places I worked as a kid simply had not paid any federal taxes. They with held them, just never got around to sending the money to Uncle Sam. It bothered me because I had been cheated and so had Social Security. Unfortunately, there wasn't much I could do about it. I certainly hadn't saved my payroll stubs to prove that the money had been held out and most of places that hadn't paid were long out of business. But this last one that came Friday is a different matter. Now I've not had any problems with my income tax for the last several years, but according to Social Security one of the places I worked for 3 years only paid the Medicate tax for one year. This place was one of the worst places I'd ever worked and I knew that they were doing all sorts of shady stuff. They even managed to arrange a situation so that one manager was killed by her husband. Yea, really nice folks. Well, I saved my paystubs which prove that they with held the Medicare tax. They just seem to have overlooked the part about sending the money to Uncle Sam. What I want to know is whether there is a down side for me if I turn in these jerks? Anybody out there have any similar experience? Thanks -- Steve
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Comments

5 comments

Date Votes
  • Colt Super
    No downside.

    Doug
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  • minitruck83
    IRS will have copys of your returns for all of those years you mentioned complete with W2's that should show withholdings. There is a form (dont remember the number) to fill out and they will give you credit for those years that were not reported. It's not your problem it's the employers! With the competence level at IRS I doubt they would even contact your former employers. Now if you underpaid $2 the first warning you'd have is when your bank accounts got locked!



    Allen
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  • cpermd
    Turn them in now!

    CP
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  • drsck
    Thanks guys!
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  • neacpa
    The mistake is not necessarily the business. I see this quite a bit. Unless the W-2's were transferred by magnetic media, there is someone in the Social Security's office inputting the information from paper copies of the W-2's into Social Security's system. I know is is hard to believe, but government agencies do make mistakes (Dripping with sarcasm). Often times, digits in the social security number may be transposed. So, someone else is getting credit for your earnings history. What happens many times is the SSA will send notices that they have not received copies of the W-2's and the employer (or accountant) will send copies again. And again. And again. Finally, the info gets processed.

    In your case, you don't need to send copies of the paystubs. All you need to do is to send a copy of the Form W-2 (from your tax return) and that will resolve it.
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