If I received severance and paid all taxes, when I'm rehired does the company owe me the taxes paid?

If I was paid 52 weeks of severance and paid 35% taxes upfront, then rehired after 31 weeks, it would seem as if I owe the company 21 weeks of net severance (per their policy), but they owe me 21 weeks of taxes already paid, correct?

1 answer  |  asked Nov 28, 2011 5:41 PM [EST]  |  applies to Massachusetts

Answers (1)

Kevin McGann
I assume that you received a lump sum "severance" and that typical income taxes were withheld. That money belongs to the IRS. If the company hires you back and your documents support that they get a pro-rated amount of pre-paid salary back, then you have over-paid your income taxes for the year. This should wash-out on your tax return/refund next year. I suggest you take this question to a tax accountant.

posted by Kevin McGann  |  Nov 29, 2011 10:16 AM [EST]

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