WE have a nonqualified excess match plan. Employer match is deposited annually after the end of priro year to an account

Contribution years are 2005, 2006, 2007 & 2008

We did not withhold the FICA on the vested amount (vesting is 25%/year)

We are figuring out the FICA on vested amounts for each of the 4 years . For most it should be the 1.45%

We plan to submit all 4 years with a 941c for this quarter end

Question:

Do we need to send 4 years of amended W-2's?

Can we avoid this by having the Company pay the employee's share of the FICA due?

Does anyone have a sample letter we can send to employees explaining this correction?

Thanks
Lexy

Alexa, did you ever figure out what needed to do?

Our outside accounting firm indicated we should amend 4 years of W-2's showing correct FICA for each year
A corrected 941-c would be filed for all past years with detail in an attachment

Employer could pay employee's share of FICA

Did the employee recognize current income to the extent that the employer paid the employee's portion of FICA (actually, in your case, HI (Medicare))?

No since we are in the process of withholding the FICA from the employee's last paycheck in Dec and employer is not paying the employee portion

FYI: The regulations at 31.3121(v)(2)(d) have rules for dealing with FICA withholding errors for NQDC plans in closed tax years.