For ten years medicare taxes were deducted from your check and reported because of an error in the system regarding your employment date Does your employee have a liability towards reimbursement?

Answer 1

Your question is worded strangely. Your employment date may have an effect on when taxes started, by maybe a week or so...but the tax is based on earnings. It doesn't make a difference if you were employed one week or 52...your earnings that year determine your tax. And it certainly isn't an error that continues over years. I suspect that you meant employer where the Q says employee. (Which goes to say if your suggesting you have an independent contractor VS employee argument so tax shouldn't have been taken at all...much more needs to be considered and your use of the terms you just did would sink that argument right off). More importantly, if the employer doesn't show you as an employee and doesn't withhold the 1/2 of the total amount he pays over on your behalf (the other half he pays for you), --- then you as a self employed would have to pay the entire amount. Which I guess is where the employee having a liability part of the Q could come in...) If you are an employer who paid over FICA on behalf of someone who you wanted to keep as an independent contractor.....and how you could do so since employes get a W-2 (and many other payroll matters) and IC get a 1099 seems virtually impossible (the year end reports wouldn't reconcile). If he does under some strange thing actually owe you...your going to pay so much more in penalties, interest, etc for the wrong reporting...and have to prove that he was an IC (which by the lenght of time and your actions would seem to be a tough argument), your better off not trying.