Complete Labor Law Poster for $24.95
from, includes
State, Federal, & OSHA posting requirements


No announcement yet.

Extra pay-taxes?

This topic is closed.
  • Filter
  • Time
  • Show
Clear All
new posts

  • Extra pay-taxes?

    Tennessee--My husband's employer has paid their employee's an extra 16 hours in holiday pay so on their next 2 paychecks they are going to deduct 8 hours of pay. OK. But, they are not going to do anything about the taxes. What exactly needs to be done about this? I will see if there are any other details.

    Here is the email that was sent out.

    Subject: Overpaid

    Due to difficulties in the Kronos pay system that occurred during the Christmas Holiday; several daylight team members were overpaid by 16 holiday hours. Therefore, during the next two pay periods, the following dates (12/26/05 and 1/2/06) will not be paid in lieu of the 2 days they were already paid.

    If you have any questions, please contact me. My apologies for any inconveniences
    Last edited by tnhr; 01-04-2006, 07:45 AM.

  • #2
    I guess the main question is the taxes going to the proper year. Since all of this happened at the end of the year what should go where?


    • #3
      our options

      Which should they do?

      Because of the overpayment of Holiday pay and the corrections in this week’s pay check; each employee has two options to account for gross earnings and taxes. The overpaid check was in 2005 and the correction was in 2006. Therefore, earnings in 2005 are 16 hours overstated and 2006 are understated 16 hours. Therefore, each employee has two different options to account for gross earnings and taxes.

      Option 1

      Leave the overstatement of 2005 and understatement of 2006 as is.

      Option 2

      Adjust the 2005 gross earnings and taxes by the 16 hours. Shared Services will calculate the overpayment plus taxes issued in the 2005 check. In order to make the adjustment, the employee will have to write a Check to Owens Corning for after-tax amount of overpayment and the 16 hours overpayment. Then, the employee’s W-2 amount will be corrected for 2005. If you wish to utilize this option, you will need to notify me by Wednesday, 01/11/2006, and the check will be required before Friday, 01/13/2006.

      Please let me know which option you would like to take.


      • #4
        Your choice. Both options are legal. 2 days of pay is going to have a very minimal affect if you choose option one, because when the subsequent pay is reduced, taxes would be reduced also.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


        The forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on are opinions and suggestions of members and is not a representation of the opinions of does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.