I have worked for a company for a year and a half that has paid me mileage and at the beginning of the year they switched their payroll program and for four weeks they taxed the mileage. They fixed the "glitch" but are now saying that they don't have to reimburse the money they took. Is this legal? I live in New York and they paid $0.535/mile.
1 Answer from Attorneys
Don't forget your company only collects the tax; the government imposes the tax, and your employer just collects if on behalf of the government. So if they made an error and collected tax when they shouldn't have, I get it that it's a pain in the neck for you, however when you file your tax return next year you'll be able to claim the tax your company withheld as a credit agains you total tax, and you'll get a larger refund.