What action should an employer take if an overpaid employee refuses to consent to the employer's request to seek a refund of the overpaid FICA taxes?
Author: Alice Gilman
The employer can still file a claim for the employer portion of the overpaid FICA (Social Security and Medicare) taxes. The employee is free to file a refund claim on his or her own behalf. The employer should retain the employee's denial of consent in its records to preserve a paper trial in the event of a tax audit.