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posted Feb 2, 2024 12:34:53 PM

My Employer based in China has a payroll dept in CA and deducted the wrong state tax on my first two paychecks (I work I the NYC office). I'm confused on what to do now.

So I started a new company and I'm stressed because I am in a weird situation. My employer )based out of China) has a payroll dept out in California. I am their first NYC employee and noticed that my first 2 paychecks (Nov-Dec 2023) had the CA state tax deduction instead of NY. So when I noticed that they adjusted from the 3rd paycheck up until now in 2024 which I thought was fine until I received my W2 for filing. I noticed that the states in my W2 was California again and so I had to contact them again to fix this. So recently they revised everything on the W2 to reflect that I had NY state taxes deducted.

HERE is where it gets complicated in my head. 

I am asking for help because I don't want to get audited for their mistake.

Also this is all through ADP which doesn't hold on to prior records in which I would have access too and the only communication is with the girl in payroll in California who is non responsive.

Situation:

1st/2nd paycheck-

CA state tax deducted

(should've been NY tax and I'm a NJ resident)

3rd-current paychecks-

NY tax deducted

which is corrected now AND is  less $$ than CA (do I get a refund in difference in my pay?)

W-2 magically went from CA deduction to NY deduction in a week

 

Question 1 -Did my first 2 paychecks really pay California state tax automatically? If so then what am I to do to get that back and apply to NY?

Question 2 -If I didn't pay NY state tax with my first 2 paychecks BUT the W-2 NOW states that I did, how do I fix that? Or who fixes that?

Question 3 -Should I be paid the difference from the paychecks since the state tax deduction from CA was greater than NY based on comparing the now corrected paychecks?

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1 Replies
Expert Alumni
Feb 6, 2024 9:12:13 AM

Assume that the most recent W-2 is correct, and proceed from there.

 

If it shows you paid California tax, you will need to file a Non-Resident CA State Return to report that.  The W-2 should show the Amount of CA Income that applies to the CA Tax Paid in Boxes 15-17.  That's all you report on the CA return. 

 

Don't think in terms of 'paychecks', but 'total income earned' in that State.  You'll file a Resident State Return for New York, reporting the total income you earned while living there, and the total NY Tax Paid, as shown on your W-2.  

 

You'll also report that you paid $X CA Tax.  NY will give you credit for tax paid to another state on income earned while living in NY, so you are not double-taxed.  As far as your employer owning you money for the difference in CA tax and NY tax, you would need to take that up with them.

 

Since they withheld tax for the wrong state initially, you are dealing with it at tax time, but don't worry, it will all work out.  

 

Be sure to prepare your non-resident California return first.

 

@missjq885