DCP & 2025 FICA Correcting Entries

Sent to a custom mailing list on April 15, 2025

In mid-2024, the UCPath Center (UCPC) informed employees about corrections to FICA tax deductions for those who changed from student (FICA exempt) to non-student status between 2019 and March 2024.

UC is taking responsibility for missed Medicare deductions and DCP Safe Harbor contributions. UC will be paying both the employee’s and UC’s shares of unpaid Medicare taxes. Affected employees have been notified about the imputed income from these corrections. The original UCPath Notification is attached for reference.

We are informing you now because corrections are being processed by UCPC, and you may see these transactions in your DOPE reports. Here’s what UCPC is doing:

  1. Reversing the original transaction and posting a new one with the correct FICA tax.
  2. Creating a "new check" to record the imputed income for the employee tax paid by UC, using the earnings code ETW.

The employee portion is being posted to your department's salary expense via the ETW earnings code. These charges are scheduled to be posted in phases over the next few months. The repayment will be handled centrally, and the department’s salary expense will be reversed.

You do not need to open an EEC ticket. UCI Accounting has a report of these transactions and will adjust the General Ledger accordingly. As transactions are processed by UCPath, General Accounting will move them the following month starting in April 2025. The salaries recorded by UCPC will be adjusted by UCI via a Salary Cost Transfer (SCT) or a manual journal entry in KFS. If the manual journal entry is used, the correction will be viewable in DWQuery-KFS General Ledger as “FICA Adjustments.” SCT corrections will be viewable in the DOPE report. Adjustments expect to be completed by June 30th. 

A few EEC tickets have already been opened by transactors. These issues will be fixed in the correction process and the tickets closed.

If additional questions come up about processed FICA adjustments, please open an EEC ticket and assign it to Payroll Accounting.

Thank you,

Accounting & Fiscal Services

UCI UCPath