Didn't get paid :(

In Georgia I worked for a company who paid me with direct deposit. They put over 1000 in my account then immediately withdrew it and claimed bankruptcy. I have still not been paid! Is there anything I can do, besides wait for them to try to find assets to sell? I'm out a lot of money and been told not to contact the company at all.


Ben

[racer72]

You are now a creditor to your former employer. It appears that they have filed a chapter 7 bankruptcy. As a creditor, you are now barred by law from contacting the company for any reason. When assets are sold from bankruptcy filings, all secured creditors that did on get items back get paid first. Then unsecured gets whats left and unfortunately, unpaid employees usually are at the bottom of the list. You will be notified of what is happening within 30 days of filing and the letter will explain your rights as a creditor in bankruptcy. Good luck, you will need it.

Ouch, that's what I figured!

Also, I have been told I will get no W2 form. My question is, can I claim the money I was SUPPOSED to get. As it was direct deposit, the money that comes to me was supposed to be after-taxes. So the gov got a portion of the money I was supposed to get and I am supposed to get a portion of that back. A few people have told me I can't claim it, because I never received it, but that seems like saying "this company can keep your money.. so the government gets to keep your money too!" Like double jeopardy or something.

Any thoughts on that?

Thanks!
ben

[racer72]

Federal law requires the company to supply a W2 form even if they have filed bankruptcy protection. Whether you can claim the short term deposit as income will depend if the taxes have been paid on that money. When most companies withhold taxes, it is placed in a savings account to draw interest. The taxes are paid quarterly to the IRS and the company makes money on the from the interest. Really big companies (those with lots of employees) only deposit a portion of the money withheld for taxes and the interest it makes makes up the difference. I would be willing to speculate that the taxes were not paid on the lost income.
Something else to watch for, it is possible the taxes withheld from previous paychecks have not been distributed to the IRS or to Social Security. When you file your taxes, your claim for refund may be denies because the IRS did not receive the money withheld from your check. Happened to me many years ago when I worked at a filling station. The owner suddenly retired and closed the station. Filed my taxes the following year expecting a $120 refund (that was a lot of money to a teenager in 1972) but my tax return was sent back. The owner had not paid his second quarter tax bill and my refund was taken for income I had received.

Well, feel sorry for ya. We are out 1100 or so ourselves. That's another thing, about the w2, they had an outside firm doing their payroll.. they did not pay that firm, so I am told by the person selling off their assets (he may not know a thing about it) that said company refuses to give out W2's because they were not paid. Should I contact them and see about getting a W2. I have been told by everyone I am allowed to talk to that we will NOT be getting W2s and we should send a letter in with our taxes explaining the situation. Which doesn't seem accurate to me...

Thanks again!
ben

btw - this is a great site. Very helpful and quick responses! thanks!