We were just notified that my Spouses employer miscalculated commissions and overpaid her by a significant amount. Federal, SS, Medicare and 401K contributions were withheld, as well as two state taxes and a local tax. The net amount we actually received was 40% less than the gross amount.
What are the employer's responsibilities here? I assume they need to issue a W2c with the correct amounts. Are they responsible for getting the overpayments of the various taxes (Federal, SS, Medicare, State, Local and 401K contributions) returned to them? Trying to figure out what our responsibilities are. I know we need to return the overage we received, we did put it in savings, so that's not an issue, but we can't return what we didn't receive.
