Incorrect Social Security tax withholdings

[Kea]

When entering a client's W2, I noticed that the withholding in Box 4 was $30 higher than the amount the software calculated. But since she isn't anywhere near maxing out her Social Security, there is no place to "refund" the over payment.

I told her to talk to her employer to see if they really did withhold the wrong amount and they owe her the $30 or if they just need to correct the W2. When they called her back they told her to "just go with it the way it is. They changed the withholding in January." Gee, no wonder the form is wrong.

Any suggestions? Should I "just go with it?" Or is there another way to get it corrected? Will IRS computers catch / care that the withholding is wrong?

Thanks

[Lion EA]

If one employer, your client needs to get the money back from her employer. If multiple employers and she exceeded the max (doesn't seem to be her problem) then the refund happens on the tax return.

[Kea]

Thanks Lion.

Kinda what I was afraid of. Just checking for other options.

Just the one employer & they insist they are right. (Well that's what they are telling her!)

[michaelmars]

is it the 2% reduction for 2011?

[Kea]

Box 3 SS wages were $18417.06

Box 4 was $808.51

which is 4.39%

If they had used the correct 4.2%, the correct withholding would have been $773.52. (OK, so I approximated in the OP. Should be $35 off not $30)

I'm not sure why they would withhold 4.4% (rounding again). Tried to add back 0.2% instead of 2% - even though they weren't supposed to do either?

[DougO]

Most likely what happened is way back in January 2011 the employer had not adjusted their payroll system for the reduction in SS taxes from the 6.2% to 4.2% for first payrolls of the year and they (employer) ignored this problem and failed to refund the extra amount deducted to their employees as they were instructed by the IRS notices and such. If they have the records then they should take them to the employer and request the refund of the excess SS tax deduction.

[Kea]

That scenario does make sense. She has already talked to her employer & they were not at all helpful. I did ask her to compare to her final check stub of the year and she said she would have to look for it in storage. No idea if she has all of them or not. The employed did say the calculations changed in January, so "just go with what you got." Not sure which January they are referring to, but either way, they are still wrong.

I am guessing that if hers is wrong so are others that work there. Since it is a temp agency, I'm not sure if she knows any of her "co-workers" or not. She may have better luck dealing with them if they go as a group.

I suppose we can "just go with what we got" so that she can get her federal tax refund. IF she can get it corrected with the employer, it won't really affect this return.

Thanks!