I recently received my annual Wages Statement from Social Security. I noticed that my wages were overstated for 2005.

In 2005, I went on maternity leave 6 weeks earlier than expected. Our policy is 100% pay - 2/3 from disability, and employer pays the remainder. Due to delays in submitting my disability paperwork, my disability took about 7 weeks to start. During that time, my company paid 100% of my salary. Once I started receiving disability payments, my company retained my salary to recoup what they had paid.

My take home salary for that time period was $1200 less than it normally was. HR explained that basically I had to pay taxes on my salary twice - once when they paid me, and once when disability paid me. Since I was caring for a newborn at the time, I let it pass.

Since I paid the company back and didn't actually KEEP that income, shouldn't they have sent a correction to the IRS/SS? Is it too late to request that they do so?

Was the overpayment repaid completely in the same year it occurred?

Yes, all payments and repayments occured in 2005.

Have you asked for a W2-C (corrected W-2)? What does the employer say? BTW, it's not too late, and of course you'd have to amend your Federal and state returns. If you have to pay for that to be done, it might not be worth it for the refund you might have coming. Just saying.

Thank you for your response, Patty. I haven't discussed this yet with my employer, other than a casual conversation a while back where HR basically shrugged off that I paid taxes twice on the "same" income. I'm having another issue with the company, so I'm trying to gather information on other incidents that I brushed off at the time.

I agree refiling taxes is a pain in the wazzoo, and most likely not worth it for the money involved. :)