That is correct. At this time payroll is adding missing pay to next check. Some employees can be short 300-400 dollars. This is added to their next check which maybe correct or maybe not. Thus more taxs are taken? Some employees have waited up to three pay periods to receive their shorted pay. Also some employees have taken vacation one week = 40 hours and only have been paid for 32 hours. The missing was also added to their next biweekly pay again.
When I did payroll years ago, the old way was if payroll shorted your employee under $50.00 you added it to their next paycheck. Anything over and you issued a replacement check for the the shortage. Is there anything in black and white on this rule or was this just the way I was taught?
Also I need to print your response and I don't have a printer. If you could also email your answer to XXXXX@XXXXXX.XXX I can go somewhere else to print it. I am doing this for a friend who does not have a computer. Hope this helped. Thank you so much.
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
So the employees of this corp. have no other recourse but to go over their paychecks with a fine tooth comb, which they do every pay period and let payroll know about the mistakes.
Then wait for the next pay period and the next round of mistakes? How does one correct this vicious circle.
Certified Public Accountant (CPA)
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..