OSPS E-News ~ FICA Tax Refunds
Tue Jun 8 11:01:17 PDT 2010
You may recall an early-2009 OSPS project in which we refunded
over-withheld FICA tax to state employees who parked in state lots and
paid for their parking with pre-tax payroll deductions. The parking
deduction code had not been correctly configured in OSPA and the
affected employees were owed the excess FICA that had been deducted from
their pay. Because the employer matches the amount of FICA tax paid by
employees, we also owed refunds to the respective state agencies.
While the employees had to be refunded immediately, we had to wait to
make refunds to the agencies until we collected back all of the overpaid
tax from the IRS. At this time, that process is complete and we will be
making these refunds, along with the planned refund to agencies of
assessments and other charges paid to DAS.
On Friday June 4, a memo from DAS Director Scott Harra was sent to
agencies notifying them of the assessment refunds. The FICA refund
amounts were included in that memo. The memo also stated the DAS
Operations would be contacting each recipient agency to determine the
appropriate coding for the refund transactions.
This memo is to assure that agency payroll offices are informed about
the process to be used for the FICA refund. Please forward a copy of
this memo to your agency accounting office. Thank you.
If you have any questions about this process, please contact me at
503-378-6777 ext. 230 or sharon.e.mckeehan at state.or.us.
Sharon McKeehan, Manager
Oregon Statewide Payroll Services
DAS/State Controller's Division
155 Cottage Street NE, U-50
Salem, OR 97301-3969
(503) 378-6777 ext. 230
Visit our Online Resource Center: http://www.oregon.gov/DAS/SCD/OSPS/
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