Ex-plant workers may be out thousands

BUFFALO, N.Y. (WIVB) - Employees who took an early buyout at American Axle say they lost thousands of dollars to Social Security.

The former workers say someone took too much from their paychecks to cover their Social Security taxes - the "FICA" line on their checks - and Medicare. Now they are being told they can't get their money back - in most cases, thousands of dollars - because it is too late.

The year was 2006, and American Axle had some awful news for its western New York workers. They announced they were closing their Buffalo plant and moving their work to Mexico.

To further cut costs, Keith Zalikowski and hundreds of other workers were offered buyouts, worth thousands of dollars, in one lump sum, but even that had a downside. While those large payouts may have put many of those workers into a higher income tax bracket, Social Security has a maximum deduction each year, and Zalikowski believes American Axle took out too much.

As much as $4,000 too much from some workers' checks between Social Security and Medicare deductions. But when tax time came, who knew to fill out line 69 on their tax forms?

Zalikowski said, "Obviously it was a unique year because of that lump sum. It probably increased our tax bracket a couple of points. But we didn't think anything of it."

And now Congressman Brian Higgins has formally contacted the IRS and American Axle's Detroit headquarters. He wants some answers.

"To investigate this matter in an expeditious way, to confirm whether or not that occurred, and in fact, who was responsible if an over-taxation had occurred," said Rep. Higgins.

But those former workers are now being told by the IRS and tax experts they can't get their money back because they waited too long.

Zalikowski said, "Got my paperwork back in the mail with a note saying something about a statute of limitations because after three years that he couldn't do anything."

Higgins says the workers should not be penalized for someone else's mistake, saying, "Where an error had existed, they could not have known there were extenuating circumstances here."

He added that if you are a former American Axle worker who had too much Social Security taken out, you can call his office, but you will also have to sign a release so officials can discuss your case. You can find Higgins' office number and more information here.

Former American Axle workers have set up a page on Facebook. You can join it here.