Hi. I'm on H1b status since last October 1, 2019 from F1. But my company didn't bother to withhold FICA tax from my paycheck. I just notified them about this issue and now going forward they're going to withhold it starting from February. Is there anyway I can remedy last 2-3 months FICA tax ? Also is there any penalty or adverse effect on me in the future not paying FICA tax for this 2-3 months period.
All will be rectified when you file taxes in April. It might decrease your refund or cause you to owe a little this year. You can pay quarterly estimated taxes to the IRS directly if you think you were under withheld enough to be at risk of a penalty, but you're likely fine. Even if you do get hit by a penalty, it's very small. No worries.
You don't need to pay FICA tax for the income over 120K.
Social security wage base max in 2019 was $132,900. There is no max on medicare tax so at the very least that should have been withheld.
I make less than that. HR refuse to rectify this issue. Is there any penalty for me not paying FICA tax!
That is not on you, that's on them, if they were witholding prior and randomly stopped that's 100% on them, since I saw you're not past the 130k threshold. End of month they will have you you're W-2 and have your account take care of it in April. HR knows it's their ass not yours and are trying to pivot blame onto you. Personally I would email HR and CC direct supervisor on date you noticed and date you notified HR about the issue, just to cover your bases if their is a problem on taxes. I had similar problems when a company I was restructuring due to improper management had every employee as a W-9 and when HR didn't fix it all I had to deal with it. It's not a huge issue as long as it is remedied.
Nah, its on the taxpayer to make sure their taxes are withheld and paid throughout the year. IRS won't buy the excuse that it wasn't withheld correctly.
That's in April, he still has to take care of it on taxes, but I was saying for company, because HR could give him a hard time. I mentioned to have it remedied with his accountant in post
Which accountant are you talking about? Is it company account or account who is filing tax for me?
Rejoice. Penny saved is penny earned.
How?