Federal Withholdings Overheld Due to Company Clerical Error
My question involves employment and labor law for the state of: WA
My company switched payroll providers and made a clerical error changing my withholdings - both my marital status and exemptions count. This resulted in a substantial amount being withheld from my check and I am being told they can not and will not make any attempt or adjustment to correct this error and I simply have to wait until my tax return to get it back.
I find this hard to believe. If the error had resulted in withholding 99% of my pay would they really be able to tell me to just wait until April when I get my return? Am I really supposed to endure that hardship due to their error?
Re: Federal Withholdings Overheld Due to Company Clerical Error
The employer withheld the money and sent it to the government. And the government isn’t about to give it back to your employer because it is now a credit for you to apply to your 2014 return. All you can do now is file the 2014 return ASAP and get your refund.
Re: Federal Withholdings Overheld Due to Company Clerical Error
Adjustment in tax payments can be done, but they tend to trigger closer scrutiny by the taxing agency and involve a deviation from the businesses normal accounting process. If it is such a hardship, you should have noticed the error in pay quickly and resolved it. The difference then would have been negligible. Arguing your employer should pay extra fees to make last minute modifications, when you can file in February will likely get you fired.
Re: Federal Withholdings Overheld Due to Company Clerical Error
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Taxing Matters
The employer withheld the money and sent it to the government. And the government isn’t about to give it back to your employer because it is now a credit for you to apply to your 2014 return. All you can do now is file the 2014 return ASAP and get your refund.
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Quoting Disagreeable
Adjustment in tax payments can be done, but they tend to trigger closer scrutiny by the taxing agency and involve a deviation from the businesses normal accounting process. If it is such a hardship, you should have noticed the error in pay quickly and resolved it. The difference then would have been negligible. Arguing your employer should pay extra fees to make last minute modifications, when you can file in February will likely get you fired.
If a company has made an error it can correct its error by filing an amended form 941. Errors can be addressed. The IRS would the refund the overpayment to the company. There are no extra fees involved, and the IRS does not audit people because they correct a mistake they made. Correcting errors is done all the time. That comment was just made up in Disagreeable's head.
The company doesn't want to perform this work because it is a hassle. But if the company made the mistake, they should do it. It would be the right thing for them to do. But it is much easier not to take responsibility for an error and going to the trouble to make it right. So yes, as a practical matter, you will have to address it on your own tax return. Just make sure they've got your withholdings right going forward.
Re: Federal Withholdings Overheld Due to Company Clerical Error
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augustdawn
My question involves employment and labor law for the state of: WA
My company switched payroll providers and made a clerical error changing my withholdings - both my marital status and exemptions count. This resulted in a substantial amount being withheld from my check and I am being told they can not and will not make any attempt or adjustment to correct this error and I simply have to wait until my tax return to get it back.
I find this hard to believe. If the error had resulted in withholding 99% of my pay would they really be able to tell me to just wait until April when I get my return? Am I really supposed to endure that hardship due to their error?
If you wait until April to file your tax return and get your refund, then that is a choice that you are making. You could also choose to file your tax return as soon as the filing season opens, and get your refund a couple of months sooner.
The fact that we are at the end of the year and so close to the beginning of the filing season is the likely reason why your employer doesn't want to correct the problem on their end.