Overpayment of Wages / Bonus

[BeckM]

What is the name of your state? My residence is Texas Employer is in SC.
On Dec 31 3019 my employer gave me a retention bonus which was not agreed to. I notified them right away but haven't received any next steps after multiple attempts of contact HR and Payroll. They have not yet given me next steps.
I have a few questions:
1 - Is there a statute of limitations to repay the employer? How long do they have to ask it back?
2 - If it was in 2019 and it's now 2020, what will the next steps be? The money went to personal accounts as direct deposit and into my 401k.
3 - How does it impact Fed taxes and my 401k? There is no state tax in Texas
4 - What else would I need to know?

 

[PayrollHRGuy]

1. If the overpayment happened December 31, 2019, you aren't close enough to any SOL that you should even worry about it.
2. The employer has some time to claw the money back from the 401K and may well do the same out of your bank account. I would not use the money.
3. I would also not file your federal taxes before you have this cleared up.
4. You need to contact the payroll department of your employer as well as the HR department.

 

[BeckM]

1. If the overpayment happened December 31, 2019, you aren't close enough to any SOL that you should even worry about it.
2. The employer has some time to claw the money back from the 401K and may well do the same out of your bank account. I would not use the money.
3. I would also not file your federal taxes before you have this cleared up.
4. You need to contact the payroll department of your employer as well as the HR department.

I do have all the monies set aside and have contacted the Compensation Manager who has yet to respond with next steps. I guess I'll consider filing an extension just in case.

 

[PayrollHRGuy]

I do have all the monies set aside and have contacted the Compensation Manager who has yet to respond with next steps. I guess I'll consider filing an extension just in case.

Sounds like you are doing everything right. There isn't a reason yet to file an extension. You have until 4/15/20 to file.

 

[Taxing Matters]

Sounds like you are doing everything right. There isn't a reason yet to file an extension. You have until 4/15/20 to file.

On the other hand there is no downside to requesting the extension to file.

 

[LdiJ]

On the other hand there is no downside to requesting the extension to file.

And some benefit to filing it when you are thinking about it. Sometimes people forget to do it later, thinking that they had already done it.

 

[PayrollHRGuy]

On the other hand there is no downside to requesting the extension to file.

No there isn't there just at this point not a real need to.