Date: August 17, 2017

Bulletin Number: 1585

Subject Notification to Employees When a Prior Year FICA (SS/Medicare) Deficiency Has Been Created

Purpose To inform agency payroll officers of the new procedure for notifying their employees of a FICA deficiency.

Affected Employees

Employees who originally had wages paid as FICA Exempt earnings which have since been determined to be FICA taxable.
Background Please refer to Bulletins 1493 (New Repayment Rate for Deduction Code 502 NYS (SS/Medicare Deficiency) for Employees with a FICA Tax Deficiency) and CU-547 (New Repayment Rate for Deduction Code 582 CUNY (SS/Medicare Deficiency) for Employees with a FICA Tax Deficiency)  for details on employee notification, including a letter template that agencies can use to satisfy notice requirements to an employee.

Effective Date(s)

OSC Actions OSC will enter general comments (OSC WC or OSC TaxAud) stating the year of the deficiency, the amount owed, and the start date of repayment.

Agency Actions Agencies are to run the NPAY776 Consolidated Correction Sheet Report which is available every Friday. Agencies will be given two full pay periods to notify employee(s) before the deficiency deduction starts.  Written notice to each employee must include the year(s) to which the repayment applies and the amount that must be repaid.

Questions Questions regarding this bulletin may be emailed to the Workers’ Compensation Mailbox, or directed to the Workers’ Compensation Hotline at 518-474-6223.