My employer asked me to repay gross overpaymant of $2500 ($2000 net + $500 taxes withheld for november 2016) in march 2017, I repaid it and got W-2C. in W-2C my employer reduced the tax withheld also along with wages. Is it correct? How can I get tax withheld amount back for that overpayment
If your Gross Income from the Original W2 changed, so should the FICA (Social Security and Medicare). Basically it does not sound correct because your W-2C should reflect a change at least in Boxes 1-6. When you reimbursed your employer previously paid wages, your entire numbers changed because each number in Boxes 2,4 & 6, are a percentage of boxes 1,3 & 5. So your entire W-2C should have changed due to this reimbursement.