US; Michigan
Early this year my company paid a bonus. Erroneously, I received it twice. I recognized the issue right away and contacted payroll. After a few weeks, the company took back the net amount I was overpaid, (net of taxes that is).
That much is fine.
The issue I still have is my paystubs still reflect the overpayment in net and gross earnings. The overpayment is roughly 10% of my should-be salary. I've been asking payroll whether my W2 will accurately reflect correct net and gross amounts, and taxes withheld. They have not answered that question after several months of me asking. They have said they are "looking into it".
What I am asking this group is what happens in the worst case, which is the employer takes no action? Some things I thought of are:
- The IRS, state, etc. believe I made more money than I actually did, and figure my tax liability higher than it should be.
- The employer represents that taxes on the overage were paid on my behalf--which sounds nice enough until you consider that the withholding will probably be insufficient, not to mention the tax calculations will be just plain wrong
- The overage might eff up my Roth IRA eligibility for this year
- The SSA has overstated earnings in my timeline, falsifying social security calcs
What else goes haywire?
Submitted October 18, 2021 at 08:03PM by Key_Flamingo1947 https://ift.tt/2Z6D5M6