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A perspective........ Posted by Herb Hirsch [Email]  (#114)  [Profile/Gallery]
(more from Herb Hirsch) on Sun, 6 Jul 2008 18:05:47
In Reply to: LOL, my company says I owe them $6,000!, Barry, Sun, 6 Jul 2008 16:41:36 Members do not see ads below this line. - Help Keep This Site Online - Signup |
They are entitled to recover money they overpaid you in error. Viewed as a battle, I' say that the odds are stacked against you. Just because your employer made an error doesn't mean that you can benefit.
I would approach your company on the basis that although they made an error and you must return the money you simply don't have the money laying around. Point out that if they withhold it from your take home pay until repaid they will devastate you financially. Try negotiating for repayment over a period of time....say the next year, as an additional deduction from your pay. Alternatively, perhaps an arrangement wherein your next increase or bonus was used as the source for repayment. I would definitely ask for a waiver of interest on any repayment plan.
Your post points up another possible issue. Your W-2 may have been incorrect in a manner that resulted in incorrect payment of Federal or State income taxes. Ask for a corrected W-2 for the tax year effected. You have up to 3 years after the filing deadline to file a corrected return if that is necessary. Additional taxes due will have an interest charge associated with them. Conversely, any additional refund will have interest added...for which you will receive a 1099-G showing interest income which you will have to pay taxes on for the tax year in which received. Your assumption, if correct, that your Federal taxable income reported was correct would, of course, make all of this moot.
In conclusion, meet with your employer and negotiate a repayment plan, as an alternative to having them shove one down your throat. Ask for their help in providing corrected W-2(s) for tax years affected so you can independently determine what effect this error may have had on your tax filings for the year(s) affected. No assumption should be made that the IRS and State tax authorities will ignore you forever even if you ignore them.
As a final follow up…..get a statement from the Social Security Administration to verify that you have received correct credit for paying into the system. You may have to wait several months for their records to reflect the correction your employer undertook.
Herb Hirsch
South Brunswick, NJ
, Mon, 7 Jul 2008 10:37:09
, Sun, 6 Jul 2008 21:04:02, Sun, 6 Jul 2008 18:05:47 <-- Viewing This Message
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