The IRS on Sept. 23 provided expedited procedures (Notice 2013-61) for employers to claim Federal Insurance Contributions Act (FICA) tax refunds in the wake of the Supreme Court's decision regarding the Defense of Marriage Act (DOMA). DOMA no longer bars the federal government from recognizing same-sex marriages, and the IRS has already announced it will recognize all valid same-sex marriages for federal tax purposes, regardless of whether the marriage is recognized by the state where the couple resides.
Employer-paid health care coverage and certain other fringe benefits for a same-sex spouse are now excluded from income and are not subject to employer or employee payroll taxes under FICA. Any employer who offered health care (or certain other benefits) to same-sex employee spouses will likely be eligible for a FICA tax refund for open tax years.
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