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Author: toroloco Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: I am being overtax on Medicare and SS please Hel Date: 2/6/2000 3:10 PM
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I get my checks cut by a company that handles payroll for several companies. They have to charge 1.45% Medicare Tax and 6.2% Social Security Tax. Every time I get my check both of them are a few cents off on the upside. I have talked with several people and the same thing with their checks. I think there is some illegal profiteering going on here. Is easier to steal $1 from 10,000,000 people than $10,000,000 from one guy. Does anyone know where I can file a complaint?

Thanks

Toroloco
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Author: Dallas22 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27486 of 121565
Subject: Re: I am being overtax on Medicare and SS please Date: 2/6/2000 4:42 PM
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I get my checks cut by a company that handles payroll for several companies. They have to charge 1.45% Medicare Tax and 6.2% Social Security Tax. Every time I get my check both of them are a few cents off on the upside. I have talked with several people and the same thing with their checks. I think there is some illegal profiteering going on here. Is easier to steal $1 from 10,000,000 people than $10,000,000 from one guy. Does anyone know where I can file a complaint?

Thanks

Toroloco>>>>

There is no stealing going on. Any money that is deducted from your check for Social Security and Medicare can be reclaimed when you file your federal tax return. If you pay more than what amounts to 6.2% from SS and more than 1.45% from Medicare you can recover this. My bet is this is a rounding issue and probably over the course of the year amounts to mere pennies. The payroll company or your company does not get to keep this money. Their yearly filing of the 1096 form must match all the W-2's for their employees.

I am pretty sure there is no stealing going on here.


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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27497 of 121565
Subject: Re: I am being overtax on Medicare and SS please Date: 2/6/2000 5:10 PM
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<< I get my checks cut by a company that handles payroll for several companies. They have to charge 1.45% Medicare Tax and 6.2% Social Security Tax. Every time I get my check both of them are a few cents off on the upside. I have talked with several people and the same thing with their checks. I think there is some illegal profiteering going on here. Is easier to steal $1 from 10,000,000 people than $10,000,000 from one guy. Does anyone know where I can file a complaint? >>

I have to disagree with the first response you got. I won't go so far as to suggest that there's stealing, but something's wrong. Rounding won't account for a few cents on a paycheck, only two: one for FICA and one for Medicare, and even then, rounding isn't always to the upside. There's also a technical tax law error in the previous response.

If one employer withholds too much FICA or Medicare, you must recover it from the employer, not on your tax return. Your employer is also where you should take your inquiry.

I say "inquiry" with purpose. I've found it's better to start out assuming that someone has made an inadvertent error and will kiss my feet when I offer the chance for them to correct it. You can always talk about stealing later if you find out they are. If you start by talking about stealing, it's hard to get nice later.

Phil Marti
Tax Preparer

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Author: toroloco Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27769 of 121565
Subject: Re: I am being overtax on Medicare and SS please Date: 2/8/2000 1:59 AM
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Thanks a lot for your response pMarti and Dallas 22. I agree with Marty on both cases. There is no place on the tax return to claim this back and rounding is not always 3 or more cents on the upside. I did tell my employer nicely that something was not right. They told me it was off only by a couple of cents every paycheck and that it was not big deal but they were going to check it anyway. It just happens that the same Payroll Company that does my paycheck does my mother's and when I checked hers it was off by as much 10 cents on FICA and 5 cents on Medicare. It seems to me a bit weird that they always charge that much to the upside. The funny thing is that no one cares to look at these things, I ask other people and they say they never check it. What can I do if my employer does nothing can I take it somewhere else?

Thanks a lot

Toroloco


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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27911 of 121565
Subject: Re: I am being overtax on Medicare and SS please Date: 2/8/2000 6:45 PM
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<< It just happens that the same Payroll Company that does my paycheck does my mother's and when I checked hers it was off by as much 10 cents on FICA and 5 cents on Medicare. It seems to me a bit weird that they always charge that much to the upside. The funny thing is that no one cares to look at these things, I ask other people and they say they never check it. What can I do if my employer does nothing can I take it somewhere else? >>

Most people don't even look at their paystubs (go figure), but *I* am getting suspicious. The payroll company, or someone in it, is either stealing or the company should line its programmers up against a wall. I suspect the former.

You may get more support from your employer (and your mother's) if you point out that the same thing may be happening on the employer's portion side. This could be especially noteworthy to them if there are a lot of employees involved. Funny how whose ox is being gored affects people's concern.

My conclusion is totally unsubstantiated, but I think someone in the payroll company, probably a knowledgeable programmer or a group of them, is skimming. I think you should go to the police, preferably with your mother and your employers.

I'm fascinated by this and would greatly appreciate it if you'd keep us updated.

Phil Marti

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