Travel Expenses Taxable
Money paid on behalf of me by my employer to cover relocation expenses. How is it taxable?
I moved for my employer in Jan of 07 from IL to NC. At that time. I received a lump sum payment to cover travel and moving expenses along with expenses in relation to the sale of my home in IL.
All of this money was added to my paystub so that I could be taxed on it. Fine. My employer also added additional money in to cover the federal and state taxes that I would be liable for.
My problem is with social security taxes. I have only earned $40,000 so far this year (my paystub shows $87k because of all of the relocation expenses) yet I've paid out close to $5k in SS taxes. I am salaried and paid twice a month. This past pay period my employer took out over 16% of my wages for social security taxes.
Apparently, I'm liable for 6.2% up to the first $95,000 earned? What are they doing? It looks like there is a $1,200 deficiency right now so can they legally just keep taking 16% of my pay to cover the difference? Shouldn't they have notified me before doing this?
Moving expenses should have been on a separate check as a reimbursement.
Your companies bookkeeper screwed up.
3 Income Types For Work and Travel
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Long-term taxable travel income tax reimbursement allowance (ITRA) package (SuDoc T 22.2/15:11751) ... |