I resigned from a railroad company in Oct 2008 with monies owed for a relocation package for early resignation, no problem. Total amount owed was 5k after taxes which the gross was 9k. The company notified me in middle Dec or so of the final amount owed and since I didn't pay until after 1 Jan 09, they now say I owe them the whole 9k. Question:
1. Can they demand all 9k even though I didn't receive but 5K? 2. Can they garnish my wages? I am not currently employed. 3. Where is the 4k in taxes? When I file for 2008, do I include this in with their W2 they will send? Will I see that 4k at all? 4. Do I have any legal rights? It was never spelled out in the 1 page agreement that I had to repay in a certain tax year or should I have known that? Sorry I didn't know that.
Originally posted by 10037562: I resigned from a railroad company in Oct 2008 with monies owed for a relocation package for early resignation, no problem. Total amount owed was 5k after taxes which the gross was 9k. The company notified me in middle Dec or so of the final amount owed and since I didn't pay until after 1 Jan 09, they now say I owe them the whole 9k. Question:
1. Can they demand all 9k even though I didn't receive but 5K? 2. Can they garnish my wages? I am not currently employed. 3. Where is the 4k in taxes? When I file for 2008, do I include this in with their W2 they will send? Will I see that 4k at all? 4. Do I have any legal rights? It was never spelled out in the 1 page agreement that I had to repay in a certain tax year or should I have known that? Sorry I didn't know that.
Thank you for any advice.
You will either need to pay the $9K, pay the $5K and hope they do not sue you (I doubt they would.. they would burn through $4k in legal fees fast) or you will need to get a lawyer. Bottom line is these are individual contracts you sign with your company, they are not covered by an "law" that I am aware of. You signed a contract, you need to read it, understand it and try to negotiate your way out of it if it turns out they are right.
in your W-2 of the year you moved, your income is higher due to the moving expenses, you should then see a higher withholding tax. That is the taxes they withheld.
