Overcontribution to dependent care plans

[Guest jreddi]

Employees contributed to two dependent care plans (de-merged companies whose payroll systems don't talk to each other) during 2000. Now, there is the possibility of an overcontribution beyond the $5000 annual limit.

I realize the employee is responsible for monitoring this, but, in case they don't, what are the penalties (if any) that the IRS would impose or what are the other tax liabilities to the employees?

[Joe Priselac]

The employees would be responsible for the taxes on the excess contributions. The employer is responsible for any FICA taxes that may be due.