We have an expatriate who was, by mistake deducted for social security and medicare taxes, which he should not have been as per the agreement between US and his country. SO he was paying for social security and Medicare since July 2007 and now we want to refund the money to him. We are running our 2nd payroll in 2008. though the retro is taking place since July 2007 but the refund is only for the 1st pay period of 2008. It's not refunding social security and medicare money for the year 2007.
Can somebody please help me on this. I can not figure out why it's happening like that.