Employer paid the wrong state - they want me to pay for the recouping and filing to new state

[Francine Carstensen]

I work for Company based out of New York on a Contract Job. I live in Alabama. When I was filling out my paperwork I specifically pointed out that they should not be withholding state taxes in New York, as a resident in Alabama.

They sent me an updated form to fill out and I thought that was the end of it.

Now, when I checked my paystubs to see if I maxed out my 401k, I noticed it showed "NY State Tax" on my paystub.

I brought this to the attention of the employer and they are requesting that I have to pay to go to a tax preparers office to not only recoup the monies incorrectly paid to NY, but then also pay them to Alabama.

I'd like to know what is my recourse? I think I should be reimbursed for this expense as it is not MY MISTAKE, but they are now asking me to both pay financially to fix their screw up, but also they - as I suspect - have offered to retroactively fix the amount for this quarter that was paid incorrectly to NY and they are supposed to send me that in my next paycheck.

I am guessing two things will happen: #1 they will tax me on this "refund" 2. This will not be an inexpensive visit.

What is my recourse legally?

 

[davew9128]

Not sure what you would expect a paid tax preparer to do mid year. The mechanism for recouping state withholding is to file a tax return, which you won't be able to do until next year. Your employer fouled this up and should correct the error. No doubt they don't want to deal with the hassle of correcting their state payroll filings, getting money back, and submitting it late to the proper state.

 

[FlyingRon]

Before you get too far. Where are you actually performing the work?