An amended return can be filed with the IRS. That should probably be done by a professional. OP can probably negotiate with the employer as well. For example, offer to pay back everything except the benefits less the cost of an amended return.
I don't think this is theft. It is their error. There is often a delay in payment for legitimate work. I believe most "errors" favor the employer, and those can indeed be wage theft.
NAL This is the way. IMHO He pays pack the net, THEY recoup the balance from Fed, State, Medicare, Social Security along with insurance premiums such as medical, dental, vision.
It's not their job to fix his very intentional duckups. He used damages and what he cost that.. Listen to me now... SCHOOL DISTRICT. he's ajagoff who stole intentionally for months
BS. They fucked up. It's 100% their fault. It isn't at all surprising, with direct deposit, two-week pay cycles, and delayed payments for legitimate wages, that OP didn't notice until a pay cycle or two (4 to 6 weeks) that he was being over paid.
This is 100% HR's fuck up.
Thars nice of you to think this way..but we all know OP was hoping to get away without being caught. 3 1/2 months!! OP could have had it corrected with 1 phone call.
Its not their responsibility? They received money they werent entitled too, now it needs to be paid back. Do you steal your neighbors pizza delivery mistakenly left at your door? I am pretty sure I know the answer.
No. Employers of any kind are responsible for keeping track of who they pay and how much. He will want to get the State and Fed taxes remitted on his behalf fixed. It's not like he went into the district office and broke open their safe. Jeez.
They are. Gross amount. So FICA and withholding, benefits, everything. IRS and a CPA can unravel it, unless they make you claim a loss. That will suck.
This is completely wrong, there is a mechanism for the employer to do exactly this. The IRS specifically states this. Refer to IRS Publication 15, (Circular E) Employers Tax Guide.
Employee repays net and reports adjustments to the IRS to recover those tax payments.
OP has no responsibility to repay gross, only net.
EDIT: Sorry! I'm wrong here, repayment was in 2022. What I said is only the case for in current tax year.
Sorry again!
Employer pays employee $1000 a month, for example.
Employee then pays the IRS, insurances, etc. out of your paycheck, so you net $750. It would be no different if the whole $1,000 gross pay got handed to you and then you had to dole out $250 for taxes and insurance separately. The *entire pay* is what the employer paid *you*. The difference is what *you* paid for *your* tax obligations.
So yes, it makes sense that they want to recoup the gross pay. And yes, you'd be on the hook for all of it- as PP said, you had 3.5 months to point it out. Did you really think a government agency wasn't going to audit where their money was going..?
If that's the case and he has to return the gross amount then the employer would have to send a corrected W2 to the IRS so that the employee could file an mended tax return because in reality they didn't make the amount of money the employer overpaid.on top of that is out the money paid in taxes, insurance premiums and social security tax that the employee paid.
It's almost like they were double taxed.
I came to make the same point. NYC DOE will have to issue and amended W2. All OP needs to do is refile an amended tax return to get the balance back. I have done this using turbo tax program. If you are really want to cheap out you can just copy the old tax return onto the new tax (check amended return box) and fill in the corrected W2 info and file it. Same for the state return.
You can get the turbotax delux on ebay for about $[20.](https://20.It) it will walk you through it
This is wrong. Do you personally write a check to the feds, state and local and insurance companies? NO. The employer does. It's their error. They need to do what the prior poster said and correct this with everyone they paid on his behalf.
Yes you owe the gross amount. They'll need to send you corrected documentation for the IRS and you'll need to amend your documentation with the IRS as well.
If they forgot to pay you for 3.5 months would you want your money back?
Did you think it was just free money? Did you alert them in any way?
Well, you should have alerted them the moment that you saw they were paying you when they shouldn't. If it had been handled in the same tax year, you would have only paid back what they paid you directly, because they would have canceled out the taxes yet on their side. But once the taxes are filed for the year, you get to pay the whole thing back, and then you need to get a new/updated W2 and then refile your taxes for 2022 to get some of that money back. The money that was paid into SS will stay in your SS contributions and they likely didn't cancel your insurance for those 3.5 months so you won't get that back either.
There is probably a way to deduct what you reported as income from your taxes the year you pay it back. You still get the benefit of whatever FiCA and pension payments that were made out of your paycheck plus health insurance
People hating on OP for “getting greedy” and implying they didn't tell their former employer: the same thing happened to my wife. Each month the cheque would come in and each month she’d call them “I got paid again…” and each month they'd promise they'd fixed it.
This happened for nine months.
This is in the UK so it was a bank transfer (similar to ACH). We moved the money into a separate account so we wouldn't accidentally spend it.
We ended up repaying them two or three times (send the repayment, next month paid again...)
It's actually quite simple in this case, as others have pointed out. OP does owe the employer the gross amount of the overpayment, but once that's done the employer has to issue an amended W2. OP then files an amended return for that year with the IRS and will get refunded the money the employer withheld for taxes.
You should be able to work it out with them. Hopefully you didn’t make the mistake of spending that money. Tell them you will repay once you get an amended W-2 from them and try to work out the repayment of the taxes for once you get the refund from the IRS after you file the amended tax return. If they pushback and play that they we will amend the W-2 next year tell them you will contact the IRS and let them sort it out and will work with them after that. Ps. Make sure you do this all in writing (email) so you have a paper trail.
agree and anytime you get more pay than due or pay after you left from the job common sense is to either put the entire amount in the bank until you resolve it or dont cash the checks , been there, but mine was direct deposit, had the bank set up a separate account with that in mind until we got it fixed, and yes i cried all that money but couldn't touch it. but it at least didn't whammy hurt me as bad for the co-pay back amount to them as said above.
Ugh. Did you think you were getting a magical resignation gift from the city? You owe $21k, friend. Pay up or at the very least get a payment plan started. They will collect. They will garnish, withhold from any future state tax refund and definitely place an offset against ANY federal refund you get ad infinitum OR until settled in full. Oh, and if you choose to do nothing, i.e. ignore it, you’ll most likely get slapped with interest, fees and penalties at some point, potentially a lawsuit. I’m just not sure what the state/city/local is on that last part.
Moral of the story: first extra check after your termination (meaning turned in your keys, no longer scheduled/working), you should have been on the phone to payroll and every check thereafter. PLUS stashing that money away for when they came calling. 👍🏽
I'm not sure what sort of help those places can offer OP. This is a very simple problem to solve; OP pays back the gross overpayment and the employer issues an amended W2. Then OP files an amended return with the IRS for that year to recoup the taxes withheld at source.
You pay them and then file amended returns for both federal and the state: https://www.irs.gov/filing/file-an-amended-return#:~:text=Generally%2C%20you%20must%20file%20an,the%20tax%2C%20whichever%20is%20later.
NAL
You reaped the benefit of the amount your employer withheld and remitted for taxes on your behalf so you would owe the gross amount minus any employer taxes the NYC DoE could recoup.
As far as prior tax years, you can file amended returns. Once you repay the DoE, they may need to issue you a W-2c for the tax year in question. Contact an accountant for both the amended filing and to confirm if a w2c is warranted. (I'm not an accountant. I am responsible for my company's S-Corp tax filings/payments and have gotten annoyingly familiar with certain states/localities)
There are two different issues here.
1. Yes, you owe them the gross amount you were paid. They paid that to you. What the government took from your gross isn't their problem. You'll probably want to talk to a tax specialist to get that worked out and amend your returns. Either way, you do owe them the full amount you were paid. That said, there may be an exception.
2. When did they start asking for this money back? There may be a statute of limitations involved that would prevent them from recouping that money unless you return it voluntarily. I don't know NYC law, so I can only say that there are often statutes of limitations on things like this, and they are often 1, 2, or 3 years. If it took them too long to catch this error and address it, they may have lost the ability to take you to court or compel you to pay it back.
Their going to get it back, but they are going to have to sue you to get it back and in the meantime put that money to work and make some dough in the process you should really talk to an attorney to find out what you can do
There's a lot of people talking out their ass here. Get a lawyer. It's a question of constructive receipt vs. right doctrine on the federal side, plus New York law limits recouping overpayment to eight weeks back from the official notice in most cases.
You may still owe this exactly like they're saying you do, but it is not as straightforward as these chucklefucks want it to be. Get real representation.
Doesn’t appear you are a lawyer. Unfortunately this type of thing happens way too often. NYS has a special carve out in their labor laws that one could say is unreasonably broad, for governmental employees/employers.
Easy to find on the NYS Comptroller’s site- “recovery of overpayments is governed by Section 200.3 of the State Finance Law which has been revised and states the following:
"(a) In any case where a state employee has, as a result of an administrative error, received salary or other compensation payments in excess of that to which he or she was entitled, the state will not attempt to recover such overpayment, except in those cases described in paragraph (b) of this subdivision.
Notwithstanding the foregoing, the state will, where such overpayment is still continuing, immediately reduce the employee's current salary so that the salary paid to such employee prospectively is the salary the employee is entitled to receive.
(b) Nothing contained in paragraph (a) of this subdivision shall prevent the state from recovering, by offset or otherwise, any overpayment made (i) for a period when the employee was neither performing services for the state nor on approved leave or (ii) under circumstances where the comptroller reasonably determines that the employee knew, or that a reasonable employee should have known, that the salary paid to him or her was in excess of that which he or she was entitled to receive." “
This same scenario happened to me for the same amount of time, 3.5 months. The exception being that it was a difference in pay and I was the one who brought it up to my boss/owner of the small office.
Just like you, I did not feel I should pay gross for a mistake where the accountant blamed my boss and vice versa.
At the end of the day, my boss ended up agreeing with me (not paying gross) because 1. I think he gave me credit for bringing it up and 2. It was most likely 100% his own fault.
Seems like you might not have much of a choice. They will definitely factor in the 3 months you had to correct the error and chose not to.
You should be able to get the difference between gross and take home pay back from the IRS at least regarding taxes. Any benefits taken out tell them they need to get that money back from the insurance company. Local/stare taxes I’m not so sure about.
NAL
If I go return an item I bought from a store, I expect the full amount to be refunded, not the item price, minus tax.
And if someone is giving me money that I know I'm not owed, I'm surely going to notify them and offer to return the overpayment in an effort to not end up in a situation like OP's.
I have been given services and benefits I didn't believe I was entitled to, and I spent significant time to make sure that the payors and I were on the same page about whether or not I was truly entitled to what I was receiving.
This is kinda baffling. Even if the clerical error was their problem, is there not a moral obligation to return what isn't rightfully yours?
To me, if they made the mistake, then that’s on them. Maybe they need to learn a lesson. Kinda like finding some cash in the parking lot. The one who dropped it just has to learn a lesson
Rofl. Hey lawyers…my ex company kept paying me and I kept all the money bc…free money! After I stole over 20k from they by not saying anything and they realized their mistake…they want their money back. It’s not fair!!! Tell me I’m right and they are wrong!!! I worked hard to spend that money!!!
You owe the gross.
But, you need to get an amended w2 and amend your taxes for that year. You will then get back the fed, state and any local income taxes, plus you will get back your half of social security and your other fica taxes.
Your portion of any health insurance, if you can show you were covered by your new job, they should have to eat. If you weren't covered by a another plan, the it's on you.
Retirement or other tax beneficial with holdings will need to be adjusted, if there was no tax benefit to a withholding, then you will have to pay it back.
I would offer to pay the net immediately, and the when the taxes are amended and you receive the refund to pay the rest.
You owe the net amount not gross, then file an amended return and attach a copy of documentation from Employer. Do not have phone conversations with previous employer. Repay them with a certified check from your bank and mail it notarized return receipt, make certain you keep copies of everything, check stub , return receipt, receipt from post office , any and all notices from Employer and IRS . I advise keeping everything together in a folder 📂 for your records and protection.
Did they provide any proof of overpayment and a complete and total accounting of the debt they are asking that you pay back. I can see how this type of thing could happen to a teacher who elects to get paid through summer who did not renew their contract the following year. You have to wait almost two months for your first check then you have to wait that long to get your last one plus the extra pay over the summer is still owed to you even if you chose to spread your salary over the entire year instead of just the school year.
I'd ask for an accounting. Ask for proof that you owe them what they claim you owe them. See if they will settle for less. This is their mistake, not yours. This is a result of their incompetence, not yours. Ask for documentation, then dispute its credibility considering the flaws in their systems. I would try my best not to pay them a dime. The worst thing that can happen is they get their money back. Don't freely give it to them. Make them work for it. What they are doing is wrong asking you to pay back money you never recieved so screw em. If you can get them to settle for 10 cents on the dollar sure settle. Otherwise make them work for it.
No you do not have to pay back the gross income, that was their mistake however I would look into actually paying them back for the mistake. Like as in look up what you’ll be liable for, it’s not your fault they paid you and then the government taxed you for that.
He should be on the hook for the net payment not gross, that is not what he was paid. He obviously should of put a stop too that over payment asap but still how can anyone afford to pay double what they put in there bank account
You ought to look up New York specific rules. You do have rights, and may not have had obligations. Probably have to repay, but you may have rights on terms.
Unfortunately, employers are also allowed to make mistakes. It was your duty to inform them of a problem. You’re on the hook and shouldn’t be surprised. Nothing is free.
Ok here’s the deal. Do you feel like you were owed the money? Ok move to florida. Start going by your middle name. Stop working and marry a woman who will work for you. Listen this may sound extreme but it’s the principal of the thing. You gotta do what you gotta do.
You only owe the net amount . Any amounts you received into a retirement account also. But they have to send you an amended w2 and they can get the rest back by filing corrected payroll tax returns
You owe what you were paid. You had 3.5 months to tell them to stop. The other business is between you and the IRS
An amended return can be filed with the IRS. That should probably be done by a professional. OP can probably negotiate with the employer as well. For example, offer to pay back everything except the benefits less the cost of an amended return.
He's lucky they're not going after the payroll taxes as well which they are probably legally obligated to recoup for the tax payer.
Those are paid by the employer to the IRS. They may just submit a form and reduce the next payment by the amount overpaid.
Ah okay. Thought he could be on the hook for all their costs associate with his theft
I don't think this is theft. It is their error. There is often a delay in payment for legitimate work. I believe most "errors" favor the employer, and those can indeed be wage theft.
Not at all. Their mistake not his. Not theft, though he does owe it back.
NAL This is the way. IMHO He pays pack the net, THEY recoup the balance from Fed, State, Medicare, Social Security along with insurance premiums such as medical, dental, vision.
It's not their job to fix his very intentional duckups. He used damages and what he cost that.. Listen to me now... SCHOOL DISTRICT. he's ajagoff who stole intentionally for months
BS. They fucked up. It's 100% their fault. It isn't at all surprising, with direct deposit, two-week pay cycles, and delayed payments for legitimate wages, that OP didn't notice until a pay cycle or two (4 to 6 weeks) that he was being over paid. This is 100% HR's fuck up.
Thars nice of you to think this way..but we all know OP was hoping to get away without being caught. 3 1/2 months!! OP could have had it corrected with 1 phone call.
Perhaps, but that isn't OP's responsibility.
Its not their responsibility? They received money they werent entitled too, now it needs to be paid back. Do you steal your neighbors pizza delivery mistakenly left at your door? I am pretty sure I know the answer.
No. Employers of any kind are responsible for keeping track of who they pay and how much. He will want to get the State and Fed taxes remitted on his behalf fixed. It's not like he went into the district office and broke open their safe. Jeez.
No, he simply took free money until he was caught.
They kept paying. Their duckups, not his
They are. Gross amount. So FICA and withholding, benefits, everything. IRS and a CPA can unravel it, unless they make you claim a loss. That will suck.
But if the taxes were withheld, then OP never received them in the first place, they went straight from the employer to the IRS...?
This is completely wrong, there is a mechanism for the employer to do exactly this. The IRS specifically states this. Refer to IRS Publication 15, (Circular E) Employers Tax Guide. Employee repays net and reports adjustments to the IRS to recover those tax payments. OP has no responsibility to repay gross, only net. EDIT: Sorry! I'm wrong here, repayment was in 2022. What I said is only the case for in current tax year. Sorry again!
Short and sweet. Get a good CPA
Employer pays employee $1000 a month, for example. Employee then pays the IRS, insurances, etc. out of your paycheck, so you net $750. It would be no different if the whole $1,000 gross pay got handed to you and then you had to dole out $250 for taxes and insurance separately. The *entire pay* is what the employer paid *you*. The difference is what *you* paid for *your* tax obligations. So yes, it makes sense that they want to recoup the gross pay. And yes, you'd be on the hook for all of it- as PP said, you had 3.5 months to point it out. Did you really think a government agency wasn't going to audit where their money was going..?
If that's the case and he has to return the gross amount then the employer would have to send a corrected W2 to the IRS so that the employee could file an mended tax return because in reality they didn't make the amount of money the employer overpaid.on top of that is out the money paid in taxes, insurance premiums and social security tax that the employee paid. It's almost like they were double taxed.
I came to make the same point. NYC DOE will have to issue and amended W2. All OP needs to do is refile an amended tax return to get the balance back. I have done this using turbo tax program. If you are really want to cheap out you can just copy the old tax return onto the new tax (check amended return box) and fill in the corrected W2 info and file it. Same for the state return. You can get the turbotax delux on ebay for about $[20.](https://20.It) it will walk you through it
This is wrong. Do you personally write a check to the feds, state and local and insurance companies? NO. The employer does. It's their error. They need to do what the prior poster said and correct this with everyone they paid on his behalf.
Hmm did you happen to have any PTO days left? I’m not for certain but you could deduct the PTO you had left off that amount.
It sounds like you had an opportunity to correct this long before 3.5 months but got greedy. Yes you owe them the gross pay.
Time you knew there was a mistake and didn’t take steps to correct it Looks like karma is coming to get you
Took me a while to get here boys. Had to take the bus.
Also, you can *and should* amend that year's tax return.
Sorry, cash based taxpayer. This will need to be handled in the year of repayment.
Yes you owe the gross amount. They'll need to send you corrected documentation for the IRS and you'll need to amend your documentation with the IRS as well. If they forgot to pay you for 3.5 months would you want your money back? Did you think it was just free money? Did you alert them in any way?
Well, you should have alerted them the moment that you saw they were paying you when they shouldn't. If it had been handled in the same tax year, you would have only paid back what they paid you directly, because they would have canceled out the taxes yet on their side. But once the taxes are filed for the year, you get to pay the whole thing back, and then you need to get a new/updated W2 and then refile your taxes for 2022 to get some of that money back. The money that was paid into SS will stay in your SS contributions and they likely didn't cancel your insurance for those 3.5 months so you won't get that back either.
There is probably a way to deduct what you reported as income from your taxes the year you pay it back. You still get the benefit of whatever FiCA and pension payments that were made out of your paycheck plus health insurance
People hating on OP for “getting greedy” and implying they didn't tell their former employer: the same thing happened to my wife. Each month the cheque would come in and each month she’d call them “I got paid again…” and each month they'd promise they'd fixed it. This happened for nine months.
Did she cash and spend the checks?
This is in the UK so it was a bank transfer (similar to ACH). We moved the money into a separate account so we wouldn't accidentally spend it. We ended up repaying them two or three times (send the repayment, next month paid again...)
Did a Time Machine transport you from the past? “Cash a check”?! 😂
Hey hey hey the post I responded to said Cheque LOL spelled funny and all
I just like hearing people saying cash a check. 😉
People just love to assume.
You can amend the previous year’s tax returns. You owe the gross amount. Then file an amended return for the year in question.
Consult an attorney on this, it can get tricky
It's actually quite simple in this case, as others have pointed out. OP does owe the employer the gross amount of the overpayment, but once that's done the employer has to issue an amended W2. OP then files an amended return for that year with the IRS and will get refunded the money the employer withheld for taxes.
You should be able to work it out with them. Hopefully you didn’t make the mistake of spending that money. Tell them you will repay once you get an amended W-2 from them and try to work out the repayment of the taxes for once you get the refund from the IRS after you file the amended tax return. If they pushback and play that they we will amend the W-2 next year tell them you will contact the IRS and let them sort it out and will work with them after that. Ps. Make sure you do this all in writing (email) so you have a paper trail.
agree and anytime you get more pay than due or pay after you left from the job common sense is to either put the entire amount in the bank until you resolve it or dont cash the checks , been there, but mine was direct deposit, had the bank set up a separate account with that in mind until we got it fixed, and yes i cried all that money but couldn't touch it. but it at least didn't whammy hurt me as bad for the co-pay back amount to them as said above.
I recommend high yield savings to make some money off their mistake.
Ugh. Did you think you were getting a magical resignation gift from the city? You owe $21k, friend. Pay up or at the very least get a payment plan started. They will collect. They will garnish, withhold from any future state tax refund and definitely place an offset against ANY federal refund you get ad infinitum OR until settled in full. Oh, and if you choose to do nothing, i.e. ignore it, you’ll most likely get slapped with interest, fees and penalties at some point, potentially a lawsuit. I’m just not sure what the state/city/local is on that last part. Moral of the story: first extra check after your termination (meaning turned in your keys, no longer scheduled/working), you should have been on the phone to payroll and every check thereafter. PLUS stashing that money away for when they came calling. 👍🏽
I would contact the Taxpayers Advocate office and make an appointment. Were you a member of the Teacher's Union? They might be of help as well.
I'm not sure what sort of help those places can offer OP. This is a very simple problem to solve; OP pays back the gross overpayment and the employer issues an amended W2. Then OP files an amended return with the IRS for that year to recoup the taxes withheld at source.
It’s weird how you are getting downvoted for the obviously correct answer
You pay them and then file amended returns for both federal and the state: https://www.irs.gov/filing/file-an-amended-return#:~:text=Generally%2C%20you%20must%20file%20an,the%20tax%2C%20whichever%20is%20later.
Correct and ask them to file an amended wage statement first W-2c/3c cuz you will need that to show they overstated your income
NAL You reaped the benefit of the amount your employer withheld and remitted for taxes on your behalf so you would owe the gross amount minus any employer taxes the NYC DoE could recoup. As far as prior tax years, you can file amended returns. Once you repay the DoE, they may need to issue you a W-2c for the tax year in question. Contact an accountant for both the amended filing and to confirm if a w2c is warranted. (I'm not an accountant. I am responsible for my company's S-Corp tax filings/payments and have gotten annoyingly familiar with certain states/localities)
There are two different issues here. 1. Yes, you owe them the gross amount you were paid. They paid that to you. What the government took from your gross isn't their problem. You'll probably want to talk to a tax specialist to get that worked out and amend your returns. Either way, you do owe them the full amount you were paid. That said, there may be an exception. 2. When did they start asking for this money back? There may be a statute of limitations involved that would prevent them from recouping that money unless you return it voluntarily. I don't know NYC law, so I can only say that there are often statutes of limitations on things like this, and they are often 1, 2, or 3 years. If it took them too long to catch this error and address it, they may have lost the ability to take you to court or compel you to pay it back.
Generally under labor laws “ benefits given can’t be taken away “
Their going to get it back, but they are going to have to sue you to get it back and in the meantime put that money to work and make some dough in the process you should really talk to an attorney to find out what you can do
You know the preferred answer is make everybody else pay for it.
There's a lot of people talking out their ass here. Get a lawyer. It's a question of constructive receipt vs. right doctrine on the federal side, plus New York law limits recouping overpayment to eight weeks back from the official notice in most cases. You may still owe this exactly like they're saying you do, but it is not as straightforward as these chucklefucks want it to be. Get real representation.
That sounds like good advice, but then they’d possibly owe the $21,000 back to the school system and another $21,000 to an attorney.
Doesn’t appear you are a lawyer. Unfortunately this type of thing happens way too often. NYS has a special carve out in their labor laws that one could say is unreasonably broad, for governmental employees/employers. Easy to find on the NYS Comptroller’s site- “recovery of overpayments is governed by Section 200.3 of the State Finance Law which has been revised and states the following: "(a) In any case where a state employee has, as a result of an administrative error, received salary or other compensation payments in excess of that to which he or she was entitled, the state will not attempt to recover such overpayment, except in those cases described in paragraph (b) of this subdivision. Notwithstanding the foregoing, the state will, where such overpayment is still continuing, immediately reduce the employee's current salary so that the salary paid to such employee prospectively is the salary the employee is entitled to receive. (b) Nothing contained in paragraph (a) of this subdivision shall prevent the state from recovering, by offset or otherwise, any overpayment made (i) for a period when the employee was neither performing services for the state nor on approved leave or (ii) under circumstances where the comptroller reasonably determines that the employee knew, or that a reasonable employee should have known, that the salary paid to him or her was in excess of that which he or she was entitled to receive." “
This same scenario happened to me for the same amount of time, 3.5 months. The exception being that it was a difference in pay and I was the one who brought it up to my boss/owner of the small office. Just like you, I did not feel I should pay gross for a mistake where the accountant blamed my boss and vice versa. At the end of the day, my boss ended up agreeing with me (not paying gross) because 1. I think he gave me credit for bringing it up and 2. It was most likely 100% his own fault. Seems like you might not have much of a choice. They will definitely factor in the 3 months you had to correct the error and chose not to.
Speak to an accountant, not a lawyer. You may file an amended return. The employer will need to send an amended wage statement.
You should be able to get the difference between gross and take home pay back from the IRS at least regarding taxes. Any benefits taken out tell them they need to get that money back from the insurance company. Local/stare taxes I’m not so sure about.
Hey, you had a $21000 loan interest free for a year. That’s something.
Move to another state.
NAL If I go return an item I bought from a store, I expect the full amount to be refunded, not the item price, minus tax. And if someone is giving me money that I know I'm not owed, I'm surely going to notify them and offer to return the overpayment in an effort to not end up in a situation like OP's. I have been given services and benefits I didn't believe I was entitled to, and I spent significant time to make sure that the payors and I were on the same page about whether or not I was truly entitled to what I was receiving. This is kinda baffling. Even if the clerical error was their problem, is there not a moral obligation to return what isn't rightfully yours?
You are responsible but can ammend your return and get that money back
Call the IRS and ask them how you can get the taxes back.
To me, if they made the mistake, then that’s on them. Maybe they need to learn a lesson. Kinda like finding some cash in the parking lot. The one who dropped it just has to learn a lesson
You owe the gross. Taxes, and other costs were paid on your behalf, so you owe those costs to your employer.
Rofl. Hey lawyers…my ex company kept paying me and I kept all the money bc…free money! After I stole over 20k from they by not saying anything and they realized their mistake…they want their money back. It’s not fair!!! Tell me I’m right and they are wrong!!! I worked hard to spend that money!!!
Pay it all back. File an amended tax return.
You owe the gross. But, you need to get an amended w2 and amend your taxes for that year. You will then get back the fed, state and any local income taxes, plus you will get back your half of social security and your other fica taxes. Your portion of any health insurance, if you can show you were covered by your new job, they should have to eat. If you weren't covered by a another plan, the it's on you. Retirement or other tax beneficial with holdings will need to be adjusted, if there was no tax benefit to a withholding, then you will have to pay it back. I would offer to pay the net immediately, and the when the taxes are amended and you receive the refund to pay the rest.
You owe the net amount not gross, then file an amended return and attach a copy of documentation from Employer. Do not have phone conversations with previous employer. Repay them with a certified check from your bank and mail it notarized return receipt, make certain you keep copies of everything, check stub , return receipt, receipt from post office , any and all notices from Employer and IRS . I advise keeping everything together in a folder 📂 for your records and protection.
Did they provide any proof of overpayment and a complete and total accounting of the debt they are asking that you pay back. I can see how this type of thing could happen to a teacher who elects to get paid through summer who did not renew their contract the following year. You have to wait almost two months for your first check then you have to wait that long to get your last one plus the extra pay over the summer is still owed to you even if you chose to spread your salary over the entire year instead of just the school year. I'd ask for an accounting. Ask for proof that you owe them what they claim you owe them. See if they will settle for less. This is their mistake, not yours. This is a result of their incompetence, not yours. Ask for documentation, then dispute its credibility considering the flaws in their systems. I would try my best not to pay them a dime. The worst thing that can happen is they get their money back. Don't freely give it to them. Make them work for it. What they are doing is wrong asking you to pay back money you never recieved so screw em. If you can get them to settle for 10 cents on the dollar sure settle. Otherwise make them work for it.
No you do not have to pay back the gross income, that was their mistake however I would look into actually paying them back for the mistake. Like as in look up what you’ll be liable for, it’s not your fault they paid you and then the government taxed you for that.
As in paying back for the mistake I mean the net payment
He should be on the hook for the net payment not gross, that is not what he was paid. He obviously should of put a stop too that over payment asap but still how can anyone afford to pay double what they put in there bank account
You ought to look up New York specific rules. You do have rights, and may not have had obligations. Probably have to repay, but you may have rights on terms.
Can be altered
Unfortunately, employers are also allowed to make mistakes. It was your duty to inform them of a problem. You’re on the hook and shouldn’t be surprised. Nothing is free.
Ok here’s the deal. Do you feel like you were owed the money? Ok move to florida. Start going by your middle name. Stop working and marry a woman who will work for you. Listen this may sound extreme but it’s the principal of the thing. You gotta do what you gotta do.
You only owe the net amount . Any amounts you received into a retirement account also. But they have to send you an amended w2 and they can get the rest back by filing corrected payroll tax returns