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Posted 1/22/2013 by sanaaloriana in NSBR Board
 

sanaaloriana
BucketHead

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November 2008
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Posted: 1/22/2013 11:18:45 PM
In October of last year, I had a job transfer. At job A, my federal withholdings was 1. Apparently when my transfer went through, there was a clerical error, an my federal withholdings was entered as 15, rather than 1. I noticed something fishy when I got my W2s and my federal withholdings seemed low. I mean, who would expect your tax set up to change from 1 to 15 when going through a job transfer? It never even crossed my mind to check.

So now, because of this error, I will most likely have to pay taxes for 2012. I get that in the grand scheme of things, I would have paid that money anyway, whether it was over the course of a year or all at once at tax time. But that is also not how I wanted my tax withholdings set up, know what I mean?

At this point I've notified HR and payroll about the error. I'm quite pissed about it at the moment. I expect that I will get a "sorry, we'll fix it right away, but it is your responsibility to check, blah blah blah" kind of response. Honestly, I'm not really happy with that kind of response. Anybody have any advice as to what I should do or say?





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freecharlie
What happens in NSBR, stays in NSBR

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Posted: 1/22/2013 11:28:09 PM
Wow, that is a huge difference.

Unfortunately I don't think there is really anything else they can say because there isn't anything they can do except correct it for the next check.


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seasonscraps
StuckOnPeas

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Posted: 1/22/2013 11:28:36 PM
I really don't think there is anything else your HR dept can do but apologize and fix it going forward. What other outcome are you looking for? They made a mistake, no one is perfect. You didnt notice a change in your take home pay?

But i am sorry this happened, I know it stinks when things like this get messed up. If the change was made in October 2012, it might not be too bad.

freecharlie
What happens in NSBR, stays in NSBR

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September 2003
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Posted: 1/22/2013 11:30:55 PM
Was it Oct 2011 or 2012?


Tribbey: I believe, as long as Justice Dreifort is intolerant toward gays, lesbians, blacks, unions, women, poor people, and the first, fourth, fifth, and ninth amendments, I will remain intolerant toward him! [to Ainsley] Nice meeting you

sanaaloriana
BucketHead

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November 2008
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Posted: 1/22/2013 11:38:32 PM
October 2012.

And honestly, no, I didn't notice a change in my take home pay because a raise was involved with the transfer - hard to tell, you know. I know since it is only a couple of months it won't be terrible, but *sigh.* 15 is ALOT different from 0 or 1. I think part of the reason I'm upset is that really, I know not much can be done to fix it. Luckily I caught it now rather than after a whole year had passed.





"When I came home, Sprinkle's body was in the freezer, where Dwight said he left her. But all my bags of frozen French fries had been clawed to shreds...Something's not right. The vet's doing an autopsy." ~Angela

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voltagain
OklaPhoma

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Posted: 1/22/2013 11:40:13 PM
You asked for advice so...

Put your glad pants on and be as polite and cheerful as if they'd given you money. All they CAN do at this point to make it right is adjust it for the future and apologize. In the end you are responsible for tracking your own stuff like this.

Any displeasure, blame, chastizing or negative emotional displayed may make you feel better in the short run but it will only net you a reputation of being difficult to work with. Not a reputation you want with the HR department.


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AncestralPea

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Posted: 1/23/2013 9:13:47 AM
Is your withholding election not printed on your paystub? I know our payroll system prints ours on every check. So that the employee can verify they are having the correct amount taken out.

Based on my calculations, the difference between 1 and 15 allowances is subtracting out close to $2000 of income per biweekly pay period. That income is exempt from the tax tables. Depending on your income per period, that could be a difference in taxes withheld of up to $500 per period. That's a large mistake and honestly most people probably would have noticed that large a difference, even with a raise. But then again, many don't point it out when they are getting a larger amount than they think they should.

That's why it is always good to review your paystubs when you have a major change, such as a transfer, raise, etc.

However, it is their mistake. Depending on how the transfer worked (between depts, between companies, etc), it might even be that your last W-4 is invalid. You can ask that they correct your FIT withholdings for 2012 and fund that amount to the IRS as if you had paid it, they then revise your W-2 for last year and take deductions in 2013 over time to pay them back. It is a solution, but what I can't tell you is if they are REQUIRED to fix it.

Personally I would just move forward in getting it right if I could afford it. However if I got hit with late payment penalties by the IRS when I did my taxes, I would ask the employer to reimburse that amount to me.

You might consider asking this question out on payrolltalk.com. There are some heavy hitters who will know whether the employer would be required to fix it or not.

scoobers
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Posted: 1/23/2013 9:16:45 AM
Legally it *IS* your responsibility to review your paystub and assure that it is accurate.

However, I would have expected at least a 'So Sorry! We will get it changed right away' from your HR department.




BudgetMama
StuckOnPeas

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March 2004
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Posted: 1/23/2013 10:21:21 AM
I would guess when you get to filing your taxes this year, you'll see that it you don't owe a lot of money. Having a deduction of ONE and needing it set that way is pretty rare - you would have to earn a lot, not own a home, not give to charities, not have children... do all those things describe you? I would think it would even out how much you over paid all year long.

brab74
AncestralPea

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Posted: 1/23/2013 11:11:58 AM

October 2012.

And honestly, no, I didn't notice a change in my take home pay because a raise was involved with the transfer - hard to tell, you know. I know since it is only a couple of months it won't be terrible, but *sigh.* 15 is ALOT different from 0 or 1. I think part of the reason I'm upset is that really, I know not much can be done to fix it. Luckily I caught it now rather than after a whole year had passed.
As the other Peas mentioned, it is your responsibility to verify that your withholdings are correct.

Be glad it was only since October - the higher amounts withheld for the first nine months may offset the shortfall for the last three months of the year.

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