Final paycheck deduction
dortenzi
2 Posts
This question is a little long, but please bear with me.
I was recently laid off from a company where I had worked for 13 years and was given severance pay. The last date of my severance pay was to be August 21, 2001. I was also being paid for my accrued, unused vacation time, amounting to 5 1/2 days.
In January, I was relocated by my company, all expenses of which were paid by them. I knew that I would have a tax liability which would be deducted from my final paycheck. Basically, I would have "no net pay" on my last check, which I was aware of.
In early August, I received an Email from the company's Controller, informing me that the moving expense taxes would be taken out of my August 15th paycheck and asked if I had any requests on how I wanted them taken out or if I wanted just a flat rate...if I did, I should let them know. I decided it was best to just let them take all the deductions for the expenses and forego the paycheck for that period, since I could claim a lot of the moving expenses on my 2001 income tax return.
The company's payroll is done twice a month, on the 15th and last working day of each month. I expected that my last check would be for August 16, 17, 20 and 21 plus the 5 1/2 days vacation and would be paid to me on August 31, 2001. Instead what happened was, my August 15th pay included August 16, 17, 20, 21 and my 5 1/2 vacation days' pay, therefore, I was "gypped" out of 4 days' salary plus the paid vacation.
I protested the way this was done, however, got nowhere. My argument being that if I had still been working for the company, the taxes would have been taking out of the final paycheck for the year (company policy), therefore, my December 31 paycheck ONLY would have been affected, no vacation time or extra days included. I feel that the company took advantage of the extra few days it owed me so it could get as much money from me as possible. I feel that is no way to treat a severed employee, especially one that served them in their HR Department for over 13 years.
Now...my question is, is what they did legal?
Thank you.
I was recently laid off from a company where I had worked for 13 years and was given severance pay. The last date of my severance pay was to be August 21, 2001. I was also being paid for my accrued, unused vacation time, amounting to 5 1/2 days.
In January, I was relocated by my company, all expenses of which were paid by them. I knew that I would have a tax liability which would be deducted from my final paycheck. Basically, I would have "no net pay" on my last check, which I was aware of.
In early August, I received an Email from the company's Controller, informing me that the moving expense taxes would be taken out of my August 15th paycheck and asked if I had any requests on how I wanted them taken out or if I wanted just a flat rate...if I did, I should let them know. I decided it was best to just let them take all the deductions for the expenses and forego the paycheck for that period, since I could claim a lot of the moving expenses on my 2001 income tax return.
The company's payroll is done twice a month, on the 15th and last working day of each month. I expected that my last check would be for August 16, 17, 20 and 21 plus the 5 1/2 days vacation and would be paid to me on August 31, 2001. Instead what happened was, my August 15th pay included August 16, 17, 20, 21 and my 5 1/2 vacation days' pay, therefore, I was "gypped" out of 4 days' salary plus the paid vacation.
I protested the way this was done, however, got nowhere. My argument being that if I had still been working for the company, the taxes would have been taking out of the final paycheck for the year (company policy), therefore, my December 31 paycheck ONLY would have been affected, no vacation time or extra days included. I feel that the company took advantage of the extra few days it owed me so it could get as much money from me as possible. I feel that is no way to treat a severed employee, especially one that served them in their HR Department for over 13 years.
Now...my question is, is what they did legal?
Thank you.
Comments
IF your income taxes are over paid, hopefully you will get it back later. (by way of a refund).
Again, if the company withheld some money other than taxes and you did not authorize the withholding, you might have a claim (this would depend on why the company withheld it and what your state's law says about withholding from paycheck).
Good Luck!!