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Job terminated, final paycheck has windfall taxes withheld.
self

Posted on 07/05/2016 7:45:32 PM PDT by George from New England

Job terminated as of June 30. Final paycheck is for 6 weeks pay. Normal FITW bi-weekly at this salary is $0. Since 6 weeks are posted in 2 week timeframe the FITW is $289. Employer claims i.r.s. forces them to do this on severance pay. I think that's a lie. Do I have to wait until I file in April next year to get back this $289 theft of funds? Can payroll company be forced to disperse final check amount and withhold based on a larger than 2-week window?

Has any freeeper seen this or know better ? Thanks.


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: fitw; irs; tax; witholding
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1 posted on 07/05/2016 7:45:32 PM PDT by George from New England
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To: George from New England

I got a five month severance check after an inglorious end to an 18 year career. As I recall, our wondering friends at IRS took almost half. I never got it back at tax time either.


2 posted on 07/05/2016 7:48:28 PM PDT by cyclotic
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To: George from New England

And sorry to hear about your being gainfully unemployed. I hope you find something soon. In the booming Obama economy, it should be a piece of cake.


3 posted on 07/05/2016 7:49:54 PM PDT by cyclotic
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To: George from New England

Sorry George.


4 posted on 07/05/2016 7:50:32 PM PDT by fatima (Free Hugs Today :))
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To: George from New England

25% is minimum withholding on bonus.


5 posted on 07/05/2016 7:51:37 PM PDT by Raycpa
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To: George from New England

I’m sorry too - my advice is start wearing a dress.... or claim to be muslim. You should find a job quickly under those criteria


6 posted on 07/05/2016 7:51:49 PM PDT by WhyisaTexasgirlinPA
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To: George from New England

That my FRiend would be the supplemental withholding rate, which is usually in the neighborhood of 25%. All lump sum, non-hourly or salary compensation receives this withholding rate. So just imagine if every paycheck you received was a commission or bonus type pay....


7 posted on 07/05/2016 7:52:46 PM PDT by johncocktoasten (US Treasury, charging it to the Underhill's since 2009.)
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To: George from New England

The employer has the choice to do a flat 25% withholding (1a) or calculate withholding if this was a continued wage payment (1b), albeit a hefty one. See Publication 15, pages 18 and 19. Most employers don’t take the complicated route and use method 1a. They were NOT forced into how to do this.


8 posted on 07/05/2016 7:54:05 PM PDT by NonValueAdded (JFK Wanted To Send Man To Moon - Obama Wants To Send Man To Ladies Room)
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To: George from New England

Claim less withholding on future pay or unemployment income for amount over with held .


9 posted on 07/05/2016 7:54:24 PM PDT by Raycpa
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To: George from New England

they are correct. Dont blame them, blame the government.


10 posted on 07/05/2016 7:54:49 PM PDT by Mr. K (Trump will win NY state - choke on that HilLIARy)
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To: George from New England

Depending on what your profession is, you may need to look at the job boards for the DFW area. The North Texas job market is booming and there are jobs to be had.


11 posted on 07/05/2016 7:55:11 PM PDT by bigredkitty1 (March 5, 2010. Rest in peace, sweet boy. I will miss you, Big Red.)
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To: George from New England

Yes the tax man gets it because they treat it is regular pay for the period and throw you into a higher tax bracket. You should be able to get it back when you files taxes. It is even worse if you get a bonus check. Special tax rules apply.


12 posted on 07/05/2016 7:55:19 PM PDT by w1andsodidwe (TRUMP. YES! Bye Bye hiLIARy.)
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To: George from New England

I think they do have to withhold but you can download Circular E from the IRS website (employers’ tax guide) - that’s what they have to follow


13 posted on 07/05/2016 7:58:16 PM PDT by IFly4Him
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To: George from New England

Sorry to hear the bad news. The company is correct. The IRS will take a portion as you permitted in your W-2. The only solution would be to change your W-2 prior to leaving the company to “EXEMPT”. Then they would not take any of the money upon departure. You would have to next April to resolve your yearly taxes with them.

However, it sounds like it is too late for you. Did you stash some funds away? Did you reduce your credit card bills, and reduce your tethered media accounts (netflix, cable, 4G, etc)?

It sounds like you are in need of a strong situational analysis. Go to the local social services office and sign up. The Obama administration has greatly expanded the benefits that you might be entitled to.

If you are a man of color, Muslim, illegal, with many children, non-white, with no money in your bank account, you should be able to get a survival level of support from the government. Take advantage of it.


14 posted on 07/05/2016 7:58:30 PM PDT by vannrox (The Preamble to the Bill of Rights - without it, our Bill of Rights is meaningless!)
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To: George from New England

Go Gault. I’m probably right behind you.


15 posted on 07/05/2016 7:59:32 PM PDT by logitech
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To: George from New England

Sorry to hear about losing your job, but what in the hell gives you the crazy idea that it was EVER YOUR MONEY to begin with??


16 posted on 07/05/2016 8:03:36 PM PDT by eyeamok (destruction of government records.)
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To: George from New England

Quit griping, your Government has rigged FBI Investigations to pay for you know.

Seriously, the answer is yes, they can withhold that much.

Sorry to hear about your Job situation.


17 posted on 07/05/2016 8:03:38 PM PDT by Kickass Conservative (Islamophobia, a word created by fascists, and used by cowards, to manipulate morons.)
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To: vannrox

https://www.irs.gov/individuals/tax-trails-can-you-claim-exemption-from-withholding-on-form-w-4


18 posted on 07/05/2016 8:08:49 PM PDT by Raycpa
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To: George from New England

They have to take out FIT based on your W4 and the gross amount. Sorry about your job.


19 posted on 07/05/2016 8:12:22 PM PDT by Rusty0604
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To: George from New England

The irs does require it

Yeah you have to wait till April

Unemployment is also taxable come april


20 posted on 07/05/2016 8:15:56 PM PDT by Nifster (I see puppy dogs in the clouds)
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