|
At 1745 hours today, the Dept has provided the following info to the UFA:
FICA Refunds for 2006 LODI are included on the March 23, 2007 paycheck. The amount of the refund is indicated as "FICA Refund" and is listed in the deduction section at the bottom of your check stub as a negative deduction. The amount of your FICA refund is simply added to your net pay, and does not affect 2007 earnings or 2007 FICA/Medicare earnings or withholding.
The amount of the FICA Refund depends on various factors such as when the LODI was incurred, and whether or not the maximum FICA withholding was reached. For example, a member who already reached the maximum FICA withholding (6.2% of $94,200 or $5,840.40) before incurring LODI, will only have the Medicare portion (1.45%) refunded.
Since the FICA Refund is indicated as a negative deduction, it is possible for members with large amounts of LODI to have a FICA Refund in excess of other total deductions. In these cases, the "Total Deductions" amount on a member's checkstub could indicate a negative number.
This week's refund has nothing to do with the FICA LODI refund forms that are due by April 5th for tax years 1989 through 2005. Those years will be refunded at a later date. The Dept did not notify the UFA in advance, nor has it published this info in a Dept Order. Additional info will be published by the Dept in the next Dept Order.
Fraternally,
Stephen J. Cassidy
President
Joseph A. Miccio
Recording Secretary
 |
