The IRS will allow couples whose same-sex domestic arrangements were retroactively classified as marriages, and their employers, to apply for FICA refunds. The IRS specified that same-sex married couples who live in Illinois have until May 31, 2015, to apply for FICA refunds, going back to June 1, 2011. Residents of other states that retroactively recognized same-sex marriage, including Connecticut, Delaware, New Hampshire, Rhode Island and Washington may also apply for FICA refunds for any open tax year.
What to do: The standard FICA refund procedure applies. Repay or reimburse employees, and then file Form 941-X for each calendar quarter you’re correcting.