QUESTION
Can an employer granish your wages to pay another employee for an account mistake on the compaines part?
Asked on Feb 01st, 2013 on Labor and Employment - Florida
More details to this question:
I work for a company were part of my salary comes from commission of sales. When a manger makes a sale the commission should be split between all sales associates ( 6 in this instance). One employee has not be paid any of the "house Sales" for a year. The company now wants to take $343.00 from my next paycheck to compensate her. I have paid taxes on the $343 when it was paid to me in 2012 and now the retro pay to her will be taken from me after taxes again. My question is: can the take the retro pay from myself and the other four employees and if so, shouldn't it be pre tax.
1 ANSWER
Justin
The issue is whether the company can retroactively adjust your commissions. You don't say whether the company is correct in its conclusion that the $343.00 was overpaid to you in 2012. You only ask whether it can be done legally. Assuming the $343.00 figure is justified, in all probability the answer is yes. While you did pay taxes on the 343 in 2012, as the adjustment is not happening until 2013, the taxes for 2012 are correct. However, your income should be 343.00 less in 2013 and you should be income taxes only on your income after it is reduced by the 343 adjustment. I hope this answers your question
Jay Levy
Answered on Feb 02nd, 2013 at 1:10 PM