Q: Can an employer put a "settlement" check with a payroll check?
Was salary, thought I wasn't paid right, owner kinda agreed and put what we agreed to with a payroll check and they took the whole payroll check for taxes
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A:
Yes, an employer can issue a settlement check with a payroll check, but it can have tax implications. If the settlement is considered wages or back pay, it will be subject to payroll taxes like any regular paycheck. This means that the amount agreed upon could be reduced significantly once taxes are withheld.
If you believe you weren't paid correctly and reached a settlement with your employer, it's important to clarify whether the payment is for wages or something else, like damages or reimbursement, which might be taxed differently. The way the payment is categorized affects how taxes are applied.
You might want to discuss the situation with your employer to understand the breakdown of the payment and how it was taxed. If you still have concerns about how much was withheld or how it was handled, consulting with a tax professional or an employment attorney could provide more specific guidance for your case.
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