Finance/Tax Question

[olds]

This didn't happen to be but to a friend.
His whole department was over paid by $50 a month. $25 per check for a total of $600. The $25 wasn't noticed by the employees as the checks vary each period by the number of days in a pay period, and other various nuances.

The employer wants the $600 back, fair enough. But they didn't actually receive $600 cash as it was taxed.

Do they have to amend their state and federal taxes in some manner to recover the tax payments?

 

[DaWhim]

yea......you do it with your taxes.

 

[TuxDave]

Yup, hopefully their W-2 reflects a salary minus the $600. If so then it'll all work out in the end.

 

[olds]

Thanks guys.

 

[Skeeedunt]

These stories never felt quite right to me. I could see if you overpaid someone by a large sum and immediately asked them to return it, sure. But to have HR fuck up for 12 months, and then get a bill for $600... that would piss me off.

 

[Regs]

Yeah, it happened to me with a bonus payout. Have to amend it on your income tax.

 

[Jadow]

I would charge this petty employer any tax preparation fees associated with this.