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Does anyone know who I can contact in regards to my employer falsely calculating the DP Imputated Income and refusing to fix it?
My employer provides health insurance through Anthem Blue Cross Blue Shield. Our deductions are taken out pre-tax (so we don't pay taxes on our own coverage.) I added my fiance a few years ago to my insurance and for the past two years it was calculated correctly, now this year for some weird reason they miscalculated it and are absolutely refusing to budge. They have explained that they pay the additional coverage times three. In the past my portion was removed BEFORE the Imputated Income was applied.
For example, the Health Insurance deduction is $86.88. Dental is $25.25, and Vision is $2.62. Now, this adds up to $114.75 for myself, my fiance, and her six-year-old. Now they claim my DP Imputated Income is $344.25. (This is literally all my deductions times three and my portion was never removed this time.) When I pointed out this was wrong, I have had six representatives side with me, but their boss has refused to fix it and doubled down on it. I've lost close to $1k since January in take home pay because of this and am lost.
When I called the HR line a few days ago to ask what I need to do to get this fixed they said and I quote it "Look we've explained this already and no the HR reps siding with you are wrong. If you don't like our calculations or have any questions, then take it up with a tax representative or IRS."
Problem is I called a tax advisor who had no idea what imputated income even was, called a tax lawyer who was listening but hung up as soon as I mentioned my company name and the IRS who transferred me to the "fraud department" that is now completely automated and only good for your most basic tax fraud questions. I am not about to back down from this fight and just wondering if anyone else has run into this kind of issue before and who can be contacted to fight it
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see this link
https://accountinginsights.org/why-is-my-dp-imputed-income-taxed-1000-per-month/
likely the fair value of the benefits (because the employer may be picking up a portion) is greater than the actual payroll deduction.
we have no access to the employer's records so have no way of knowing if the calculation is correct.
from the article
Employers should (no requirement that i know of in the tax laws) explain how the imputed amount is calculated. if it refuses, the IRS is not going to get involved so you would probably need a lawyer.
I would understand, but it seems as though my employer simply took ALL the deductions and multiplied them by three. The previous two years, this was not the case, and I have actually requested documentation to show how it has been calculated twice now this year and have been denied both times.
If they would show me the documentation, and I could see with my own eyes that it was calculated correctly, then I would drop it. However, what I am getting from their refusal is that they miscalculated something and are refusing to show any evidence that could support or deny this. And it even states in that article that employers are required to show the information in either a breakdown on the pay stub, which to date I have never seen, or supporting documentation, which they are refusing.
Now the part that is confusing me is why the refusal? They aren't giving me anymore money and all that happens is they pay a portion of the imputated income on taxes, while I pay the remaining. And considering that I work with numbers and money all the time, you would think a business would be happy to let an employee check to ensure a mistake was not made and if it was to recoup some of their own losses as well. So makes absolutely zero sense
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