example. your paycheck is usually 500 before taxes and 400 after taxes. this time your boss pays you 1000 before taxes and 800 after taxes. are you suppose to pay him for taxes that you have no control over. wouldn't it be completely his loss for the taxes that are sent to the government...
2007-01-16 03:09:07 · 7 answers · asked by Erica L 1 in Business & Finance ➔ Taxes ➔ United States
If your boss overpays you in error, you don't pay him any taxes. He is responsible for paying his share of payroll taxes and withholding taxes for you.
If your employer made an error in overpaying you, then he will correct it in the next paycheck. If he overpaid you in error on your final paycheck, he should request repayment from you in the amount of the net pay you received, and he needs to correct the withheld amounts himself.
2007-01-16 05:14:58 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
So, this would mean the boss gave the person a month's salary (I'm assuming these figured are bi-weekly, so 400X2...). You wouldn't be responsible for the taxes, unless you were specifically paid "under the table" and reported the income. Your boss would be responsible for taking out the taxes from the gross pay each paycheck (well, I doubt the boss does it... probably some company accountant or something).
2007-01-16 03:15:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Income taxes paid on your behalf to the government are credited to you, and you'd get the overpayment refunded to you on your tax return.
But social security is another issue, since you wouldn't get that refunded.
The proper way to handle this is for the overpayment (in your example, $500) to be taken out of a future paycheck, before taxes are calculated. Sure, in your example, you'd get no net paycheck that week, but since you got paid double in the earlier week, you'd be even.
2007-01-16 04:34:31 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
in case you're presented well being coverage by your corporation, then it truly is a perimeter benefit and as a effect taxable as portion of your income. you're literally not taxed on the quantity you pay for coverage, in reality the contribution of your corporation. in case you corporation will pay all the great fee you'd be taxed extra. There are pre-tax concepts that a sturdy Human source workplace should be up on and able to handbook you with.
2016-11-24 21:10:36 · answer #4 · answered by meeks 4 · 0⤊ 0⤋
Income (pay) is income and is subject to income taxes. No ways around it.
2007-01-16 03:13:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Technically, if you were overpaid, you should be paying back every penny you weren't owed.
2007-01-16 03:13:26 · answer #6 · answered by Blunt Honesty 7 · 0⤊ 0⤋
Sounds like they are trying to scam you.....just keep the moeny, and they don't have to pay you the next time....
2007-01-16 03:13:46 · answer #7 · answered by ? 3 · 0⤊ 2⤋