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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2339
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I need someone to help me with a payroll tax question ... but

Customer Question

I need someone to help me with a payroll tax question ... but I don't see a category that exactly fits.

My company did not pay me correctly for a year. I brought this to their attention and they investigated and determinedI was correct. But the deductions seem to be too high.

What do you think?

Back pay (gross) - $8,193.24

Back pay (interest) - $528.66

Final contract payment - $455.00

Gross total - $9,176.90

Taxes - $3,090.46

Net Pay - $6,086.44
Submitted: 3 years ago.
Category: Tax
Expert:  Anne replied 3 years ago.

Anne :


Anne :

Thank you for using justanswer.

Anne :

What your employer has done is treat this payment as a lump sum (because it was), but unfortunately, lump sum payments are subject to 25% Federal withholding.

Anne :

Please see below:

Anne :

Anne :

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.

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