Originally posted by United Benefit Advisors
On Sept. 23, 2013, the IRS issued Notice 2013-61. This notice provides a special process for employers to make refund claims or internal adjustments of FICA and federal income tax (FIT) that was withheld or paid in connection with same-sex spouse benefits. Employers that prefer to use the normal refund process instead may do so.
- Use the fourth quarter 2013 Form 941 to correct/adjust overpayments for all of 2013. This is only available if the employer reimburses the employee for all FICA and FIT over-withheld during 2013 before Dec. 31, 2013. The amounts reimbursed will reduce amounts reported on lines 2, 3, 5c, and (if applicable) 5d of the fourth quarter Form 941. Line 16 or Schedule B also must be adjusted.
- File one Form 941-X for the fourth quarter of 2013 to correct all 2013 overpayments. The employer should write “WINDSOR” in dark, bold letters across the top margin of the first page of Form 941-X. (Note that only FICA, and not FIT, may be adjusted on a Form 941-X. The employee must be reimbursed for the over-withheld FICA before the employer can file the Form 941-X.)
- Reimburse the employee for the amount of the employee’s FICA that was over-withheld
- Obtain a written statement from the employee confirming that the employee has not, and will not, make a claim for refund of the over-collected employee FICA
- Provide the employee with a Form W-2c reflecting the corrected FICA amount for each affected year
- Write “WINDSOR” in dark, bold letters across the top margin of the first page of Form 941-X