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Bemman
Jul 7, 2010, 10:50 AM
On a payroll check, taxes were not deducted, was in 2009, 2009 taxes are already filed and everything in reconciled in Quickbooks as well as all accounts, should this money still be paid back to the company by the employee?

ebaines
Jul 7, 2010, 11:06 AM
Are you talking about income taxes that were not withheld from the employees' pay, but that the company paid to the IRS on behalf of the employees? Did the employees' W2's reflect the amount the company paid to the IRS, as opposed to what was actually withheld from their pay? If so, then in effect the employees each got a nice little bonus courtesy of this payroll error. Whether the company wants to be reimbursed by the employees is a business decision - you could just let it go as a bonus, or you could take a deduction from payroll and call it "company reimbursement." If you go that route you'll have to be very clear as to why you're taking money out of paychecks in 2010 whch is not taxes, and won't be included in taxes withheld in this year's W2's. Or you could reissue corrected W2's for 2009 to all employees showing the correct amount that was actually withheld, which would mean all employeees would have to file amended 2009 tax returns and in most cases would have to write a check to the IRS - that won't make you any friends either.

ScottGem
Jul 7, 2010, 11:55 AM
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Bemman disagrees

I assume you didn't mean to disagree, but got confused by the new interface being experimented with. Please do not use the Reply button to post any followups use the Answer This question options.