Legal Question in Employment Law in California
transportation allowance zeroed out
my employer participates in a rideshare program that reimburses employees for carpooling or taking public transportation. I submitted my transit passes and received a reimbursement added to my gross wages; but the same amount was deducted with state and federal taxes. In essesence; it zeroed out. I was told by payroll that it ''enhances the gross''. Which also means, it puts me in a different tax bracket and I'll be taxed on money I only received in theory.
Doesn't the employer redeem transit passes to the State Controller?? Isn't the money the employer receives for redeeming employees' transit passes suppose to be issued to the participating employees???
How can my employer be made to distribute the money according to the terms of the rideshare regulations??
1 Answer from Attorneys
Re: transportation allowance zeroed out
File a claim with the Labor Commissioner for the money owed if you can't get satisfaction through HR. If this is happening to many employees, then it would be worthwhile having an attorney represent them. Contact me if interested in doing so.