Thanx Brownj12 - I think the second situation is what my case qualifies for :-
If your W-2 includes all of your regular pay and withholding plus the pay and withholding from the retention bonus, but does not include the pay or the with holding from the last 2 weeks then the situation should be settled, and essentially you were just paid early for the last 2 weeks. It was not handled properly, but the money all works out.
My W-2 includes all of my regular pay and withholding plus the pay and withholding from the retention bonus, but it doesn't include anything from last 2 weeks. And I think you are correct, They should think that I was paid 2 weeks salary (inclusive of my Leave accural etc) in advance.
What I can see from my Dec -1st Pay cycle payslip is that there is no TAX. So they have withheld that money, am not sure why did they do that.
Also to make clear. Lets say 8000$ was retention bonus what they processed, and after tax (which includes Federal, Stat TAX, Medicare, Socical Security), what got deposited in my account was lets say 4500 $, so tax amount was 3500$.
They withheld my Dec Pay check which was 4500$ (in pay slip I don't see any TAX deducted), and they have subtracted retention to nullify it.
Do you still think I owe them money, Kindly advise?

