One of my employees had excess FICA taken out of his bonus in Deccember (he was above the salary cap). Is there any way I can credit him for this amount on his next paycheck? Please let me know your thoughts on the best way to correct this problem. Thanks,
Re: How do I correct an overpayment of FICA taxes?
You can certainly add back the excess deduction in a future paycheck or single handwritten check for the error but unless you correct the original paycheck you will have an overpayment on your end to deal with.
Keep in mind that only SS portion has a cap, no cap on Medicare and quite possible they are in additional amount for Medicare totals.
Personally I would edit the original bonus check to the correct deduction and post the excess as employee advance repayment, with the actual advance going to them this month. Then your totals for 941 will be correct