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My previous company never deducted Social Security and Medicare taxes for the last 6 years. In all these years, I have been filing the taxes using the exact W2 information that they provide. I think it was a mistake by my previous company specifically for me, since they have deducted these taxes for all other employees. The IRS till date hasn't questioned me or the previous company. I recently moved to a new company and they have started deducting it. Will there be any issues when I file taxes this year?

Whose responsibility is it for paying SS and Medicare ? I read in some forms that it is the company and not the individual.

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    You asked a question about this years ago, which was marked a duplicate of someone else’s question. The answers to that question both say that it needs to be addressed with the employer. Is there a reason why that didn’t happen?
    – Ben Miller - Remember Monica
    Apr 9 at 11:00
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    Does this answer your question? FICA was not withheld from my paycheck
    – shoover
    Apr 9 at 21:42
  • Did you ever update your W-4 after switching to an H1B? That was your responsibility to do and should have resolved this years ago.
    – rtaft
    Apr 10 at 22:20
  • Also, some workers, specifically government employees, are exempt from Social Security. They do not pay in, nor do they receive benefits. Certain legacy government employees are also exempt from Medicare. In both cases, their public retirement benefits are expected to be better.
    – user71659
    Apr 11 at 1:42

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You need to sit down with somebody who can work through the issues with you.

Based on your earlier question: Social Security and Medicare taxes not withheld from 4 years ago you have known about this issue.

The W-2 is your receipt from your employer, it reflects what you see when you total all the paychecks you received during the year. In fact the stubs for each check give you an update year-to-date accounting. There was no reason to wait until you get a new W-2 to talk to HR/payroll.

Because the previous employer didn't withhold SS and medicare you will have no credited income towards qualifying for Social security and medicare for those years. That will impact your monthly income when you retire.

Whose responsibility is it for paying SS and Medicare ? I read in some forms that it is the company and not the individual.

The company must withhold the tax. The company must send your portion and their portion to the proper tax office. If they withhold but don't send the money they have major tax and legal issues.

But what if they thought based on your actions that you were exempt? That is a legal issue. What role did you play, and what is your exposure? You will have to talk to a tax lawyer.

The IRS till date hasn't questioned me or the previous company.

I have no idea how the interaction between the IRS and the Social Security Administration work regarding W-2s with no SS and medicare withheld. How does the IRS know that is correct?

I don't know what you will owe, and if you do how far back they will go.

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