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RIF'd- No Taxes taken out of final paycheck
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RIF'd- No Taxes taken out of final paycheck
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My friend worked for another company. She was RIF'd (laid off) 2 weeks ago. She received her final pay for hours worked and a separate check for her final PTO balance.
1st- her final check for hours
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RIF'd- No Taxes taken out of final paycheck
posted at 11/11/2010 6:57 AM EST
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Posts: 2
First: 11/11/2010
Last: 11/11/2010
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My friend worked for another company. She was RIF'd (laid off) 2 weeks ago. She received her final pay for hours worked and a separate check for her final PTO balance.
1st- her final check for hours worked did not have any federal or state taxes taken out.
2nd- she thinks her PTO balance is wrong.
3rd- she requested in writing for clarification on why no taxes were taken out of her final pay. and review of her PTO balance. She has sent a request 3 times in writing now with no response.
Is there anything that she can do? My understanding is that all deductions must be taken out of her final check. Also will this mess up her W-2?
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RIF'd- No Taxes taken out of final paycheck
posted at 11/11/2010 7:03 AM EST
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Posts: 2146
First: 2/15/2006
Last: 9/14/2011
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She could possibly file a wage claim on the PTO part.
On the taxes part, my only thought is that she could report it to the IRS/state dept of income taxes. And also because it probably means the employer didn't pay their part of FICA.
If I were her, I would save back the FICA and FIT and SIT that would normally be withheld because she will be responsible for it at tax time.
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RIF'd- No Taxes taken out of final paycheck
posted at 11/11/2010 7:17 AM EST
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Posts: 2
First: 11/11/2010
Last: 11/11/2010
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Thank you for the advice! In all my years of HR I have never come across something of this nature.
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RIF'd- No Taxes taken out of final paycheck
posted at 11/12/2010 7:00 AM EST
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Posts: 464
First: 6/30/2004
Last: 11/22/2010
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I would make the wage claim and be aggressive about the taxes. If a RIF is going on, perhaps the financial situation is bad enough that other issues my put you on a bankruptcy's wage claim list.
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