Employees are encouraged to contact their employers and request that they seek a refund of the erroneously withheld FICA on the employees’ behalf. Because employers also pay a portion of FICA that is not withheld from payments to the employee, the employer will also be entitled to a refund. The employer may have other similarly situated employees who are entitled to refunds and the IRS can process a single refund claim filed by the employer more efficiently than it can process numerous refund claims filed by individual employees. If the employer refuses to seek a refund on the employee’s behalf, the employee may file a refund claim using Form 843. Line 5 is where the employee explains the reaseon for the refund and efforts made to secure it. The employee’s claim for refund must include a statement from the employer indicating whether the employer has reimbursed any of the erroneously withheld FICA to the employee or filed a refund claim for any of the erroneously withheld FICA.
How does an employee recover FICA taxes that were erroneously withheld by the employer?