TN and Social Security - US company did not deduct FICA

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QUESTION:
I have been working in the US for 5 years under a TN visa.  My empolyer has
not been withholding Social Security and Medicare.  I approached them two or
three time in regards to this stating that I thought they should be
withholding it and they said they didn't have to.   I have recently
discovered that I the should have been withholding it.
Who is responsible for my share of the five years worth of Social Security
taxes?  Since I approached them about it I don't believe I should be
responsible.
Thanks
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david ingram replies:
A usual penalty for employers who fail to make payroll deductions is for the employer to have to pay both halves of the deduction.
You might want to complain to the State payroll authorities.
It is possible for an employee to work in the US for five years without paying FICA and medicare.  However, it has to be for an employee who is transferred for a period of less than five years AND the company has to write and get written confirmation from the Social Security Administration that the specific employee is exempt from Social Security deductions.  
AND, in these cases, the company and employee then contribute to Canada Pension Plan in Canada.  This does NOT create a Canadian Tax problem by the way.
However, if you were to complain, that would put you in a negative position with the employer.
You might show them this as a indicator of what should have been done.
You are not alone by the way.  Every year I get a dozen TN and H1B holders who have not had FICA deducted.  This is serious because it will affect your retirement.
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
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[email protected]
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