Federal Insurance Contributions Act and Railroad Retirement Tax Act. (1) Undercollection ascertained before return is filed. If an employer collects less than the correct amount of employee FICA or RRTA tax from an employee with respect to a payment of wages or compensation, and if the employer as- certains the error before filing the re- turn on which the employee tax with respect to such wages or compensation is required to be reported, the em- ployer shall nevertheless report on the return and pay to the IRS the correct amount of employee tax. If the em- ployer does not report the correct amount of tax in these circumstances, the employer may not later correct the error through an interest-free adjust- ment.
Federal Insurance Contributions Act and Railroad Retirement Tax Act. (1) Overcollection ascertained before return is filed. (i) If an employer during any re- turn period collects from an employee more than the correct amount of em- ployee Federal Insurance Contributions Act (FICA) tax under section 3101 or employee Railroad Retirement Tax Act (RRTA) tax under section 3201, and if the employer ascertains the error be- fore filing the return on which the em- ployee tax is required to be reported, repays or reimburses the amount of the overcollection to the employee before filing the return for such return period, and obtains and keeps as part of its records the written receipt of the em- ployee showing the date and amount of the repayment or evidence of xxxx- bursement, the employer shall not re- port on any return or pay to the IRS the amount of the overcollection.
Federal Insurance Contributions Act and Railroad Retirement Tax Act. (1) Overcollection ascertained before return is filed. If an employer collects more than the correct amount of employee FICA or RRTA tax from an employee, and if the employer ascertains the error be- fore filing the return on which the em- ployee tax with respect to such wages or compensation is required to be re- ported, and repays or reimburses the employee under § 31.6413(a)–1(a)(1), the employer shall not report on any re- turn or pay to the IRS the amount of the overcollection. If the employer does not repay or reimburse the amount of the overcollection under § 31.6413(a)–1(a)(1) before filing the re- turn, the employer must report the amount of the overcollection on the re- turn. However, the payment of the overcollection may subsequently be treated as an overpayment error ascertained after the return is filed for purposes of paragraph (b)(2) of this sec- tion.
