Legal Question in Employment Law in California
overpayment of commission recovery
My employer overpaid my quarterly commissions by $4400. They want me to repay it (which I will,) but I only received about less than 1/2 that amount, after they deducted the taxes. (I am not certian how much tax I paid on that, as it was lumped together with the monthly commission amount. Can I ask them to recover the taxes themselves? If they take payroll deductions to recover, should it be post or pre tax amounts? And if they do that, i will still end up having paid more in taxes, as my base tax rate is lower than a commission tax rate. Won't this all result in an incorrect annual income, and an overpayment of taxes based on this higher wage that was not really earned and had to pay back? I am very confused by this, as is probably obvious.
1 Answer from Attorneys
Re: overpayment of commission recovery
You need only pay back the net amount you received, the employer can reverse the tax payments made in its tax filings with the state and feds.