overcharged on SOCIAL SECURITY TAX for 2007?

I was online to file my taxes today through the IRS website and on turbotax. when i got to a page that stopped me and said "City of ___________" owes you money....it says the following only with my info ofcourse.
'city of _______' has withheld too much social security tax and medicare tax. they will need to refund the difference and send you a corrected W-2.'
then it says" social security tax on W-2 -$653. then amound IRS calculated $0.00. then the excess amount work owes me, $653. then medicare tax amount on W-2 $152. then IRS calculated $0.00 then the excess owed to me is $152.
It says, DONT WORRY just follow these steps. ask work to refund excess soc. security and medicare tax and send out a corrected W-2c.
What does this mean. This can't be right, they can't owe me $775. What should I do? they won't let me go any further without the corrected W-2?? Anyone have similar problem???

This doesn't make any sense. If you are an employee getting a W-2, they have to take out for social security and medicare, those numbers couldn't really be supposed to be zero. If you made about $10,500 for the year from the city, then the amount of social security and medicare taken out sounds about right.