▲ 1 r/Payroll
How to explain taxes, reeeeeal simple?
Hi fam, please help :)
I work for a school, and we overpaid some employees by issuing longevity stipends. Long story short, the agreement does NOT make clear that the stipend is one time for reaching a milestone, and not a continuing annual amount after having reached that milestone.
So now we're going to retract the inappropriate pay from employees over 6 payrolls. They are worried they will end up overpaying on taxes??
We have already explained to them that taxes are a percentage of your wages, and that reducing the wages will reduce the taxes. Thus, they will not have taxes overwithheld.
Some people don't get it, and some people just wanna be mad.
How can we better explain this for the folks that actually are trying to understand?
u/ItsTankGirl — 14 days ago