I work in Pa. I receive monthly bonuses based upon performance. My employer overpaid 1 month bonus.
I receive monthly bonuses based upon performance. My employer overpaid 1 month bonus. They have requested the repayment and was advised that I will have to pay the taxes back that were also taken. Since the taxes were paid to the government do I have to pay them back to my employer as well? I have requested breakdown of the overpayment and it still has not been provided nor the repayment amount. Since the tax amount would vary depending on the amount should that also be calculated in as well?
1 answer | asked Dec 27, 2017 2:20 PM [EST] | applies to Pennsylvania
Answers (1)
You should have to repay your employer the overpayment of 1 month's bonus.
To the extent that the employer withheld taxes from those wages, those were paid to the government on your behalf. You should reimburse the employer, but then receive a credit towards taxes paid when you file your tax returns.
However, for social security taxes paid, I am not sure you can do that. It may be that the employer needs to seek a refund of the overpayment of those taxes, at least the employer's portion.
I suggest that you consult with a CPA in order to determine who can seek a refund or credit for which taxes, which then will help you to know what amounts you need to pay back and what amounts you do not.
And yes, you need a specific breakdown from your employer of all amounts that they allege were overpaid to you or paid on your behalf to the government.
posted by Scott Leah | Dec 27, 2017 3:51 PM [EST]
To the extent that the employer withheld taxes from those wages, those were paid to the government on your behalf. You should reimburse the employer, but then receive a credit towards taxes paid when you file your tax returns.
However, for social security taxes paid, I am not sure you can do that. It may be that the employer needs to seek a refund of the overpayment of those taxes, at least the employer's portion.
I suggest that you consult with a CPA in order to determine who can seek a refund or credit for which taxes, which then will help you to know what amounts you need to pay back and what amounts you do not.
And yes, you need a specific breakdown from your employer of all amounts that they allege were overpaid to you or paid on your behalf to the government.
posted by Scott Leah | Dec 27, 2017 3:51 PM [EST]
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