Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Company is doing some fancy dance around a contract that promises…

Customer Question
Company is doing some fancy...
Company is doing some fancy dance around a contract that promises to reimburse for any tax implications on a loan (really a moving bonus disguised as a loan). Here is the contract language in question:
"The company will annually "gross up" the payments to Otteman in order to cover the income and payroll tax impact and interest payments associated with the loan."
However, they have been withholding $3,726.31 from his paychecks annually to cover the costs of payroll taxes.
In response to my inquiries they sent a spreadsheet explaining why the current arrangement is in our favor: "Though you are having to deduct $3,726.gtfrom your paycheck, you receive the following benefits:
The deduction from above for your contribution to your 401K: $1137.11
The company matching that goes into your 401K: $1137.11
Your social security deduction that is NOT an extra tax (See NOTE 1): $1762.53
Total amount NOT reducing your cash to you by year end: $4036.75
Benefits over paycheck reduction: $310.44
At the end of the year you have this much more to your credit than if we had not done any taxing on your
loan forgiveness. So you come out a little more than whole."
The fact that we are reducing our total amount of income that is taxable for social security and the fact that we are contributing to our 401k through this program, does not seem to me to be adequate reimbursement for tax payments as outlined in the contract.
Should I seek out a lawyer?
Thanks.
Submitted: 3 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
5/19/2015
Tax Professional: ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions. replied 3 years ago
ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2,884
Experience: CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Verified
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA
I don't think you need (at this point) an attorney. What you need is a CPA to review what is going on and then, depending on what he finds maybe a sinple letter from him or THEN an attorney.
I will offer you a chance to discuss this by telephone. Please let me know if you are interested.
Ask Your Own Tax Question
Was this answer helpful?
Ask ShawnA Your Own Question
ShawnA
ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2,884
2,884 Satisfied Customers
Experience: CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.

ShawnA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have payroll taxes and deductions I still need to pay and
I have payroll taxes and deductions I still need to pay and state and federal taxes I need to pay for a former business I used to own. Is there a way to set up payments with these agencies? I do not h… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
242 satisfied customers
If I missed the date for my FSA childcare reimbursement but
if I missed the date for my FSA childcare reimbursement but I noted when I filed that I put 15000 in a got reimbursed for 0, and it looks like that credit went toward my taxes. Is that the case? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
What is the percentage for paying payroll taxes for my
What is the percentage for paying payroll taxes for my employees in Washington State … read more
abci168
abci168
Principal
27 satisfied customers
A quick? Received a notice of credit for income tax
Good afternoon. A quick ? Received a notice of credit for income tax purposes. Notice says if we declared amt of disability as income on prior years taxes. And we did. We now can show that as an. Offs… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Followup to: Forgetting for a moment the reimbursement, Are
followup to Barbara: Forgetting for a moment the reimbursement, Are you saying that self employed people are not allowed to take the insurance premium as expense on Schedule C? On Sch C it lowers the … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
Taxes: Where could I claim interest charges from Credit
Taxes: Where could I claim interest charges from Credit Cards and Fees from Banks and the fee that I pay to be able to pay the rent thru the Internet. Thank you . I am doing a Married filling jointly … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Should US company withhold income tax to US budget if
Should US company withhold income tax to US budget if employee (person who is in payroll) is non-resident?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
Can I take mortgage interest and the standard deductions?
Can I take mortgage interest and the standard deductions? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
A question regarding interest deduction for time share
HI THERE. A question regarding interest deduction for time share payments. My wife and I have 2 time shares.. Blue Green .and Diamond Resorts. Both annually mail us interest paid reports for taxes. Th… read more
Carter McBride
Carter McBride
LLM
1,077 satisfied customers
Should US company withhold income tax when paying to
Should US company withhold income tax when paying to Individual person (who is not employee, not in payroll) if : the person is non resident of US and is not located in US AND the person renders softw… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
How can i receive credit for tax payments made in 2017 for
good morning how can i receive credit for tax payments made in 2017 for prior year (2013)? To IRS and FTB (CA). thank you… read more
Carter McBride
Carter McBride
LLM
1,077 satisfied customers
If the employer reimburses for mileage will they be able to
If the employer reimburses for mileage will they be able to use it as a business deduction?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Can I deduct mortgage interest, real estate taxes, utilities
Can I deduct mortgage interest, real estate taxes, utilities and condo fees for a commercial rental property that I have not made available for rent? I am assuming that Building appraisal fees, and le… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have a question about interest income and interest
I have a question about interest income and interest expenses. We owned a small business which we sold in 2016. We provided the financing for the buyer. He continues to make monthly payments which inc… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Second opinion] on my 1120s i have to deduct payroll taxes,
second opinion] on my 1120s i have to deduct payroll taxes, IM confused between the difference of the taxes i withheld from the employee paycheck and the taxes the company paid?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
On my 1120s i have to deduct payroll taxes, IM confused
on my 1120s i have to deduct payroll taxes, IM confused between the difference of the taxes i withheld from the employee paycheck and the taxes the company paid?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
On my 1120s i have to deduct payroll taxes, IM confused
on my 1120s i have to deduct payroll taxes, IM confused between the difference of the taxes i withheld from the employee paycheck and the taxes the company paid?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
Tax law.FICA Tax law. W-4 and W-2 payroll tax withholding
tax law.FICA Tax law. W-4 and W-2 payroll tax withholding from wages and salaries.gross pay and take home pay. number of hours measured direct work assigned by W-4 and W-2 forms. for Medicare eligibil… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x