CA Employer issues Corrected W2 forms to Employees. Is employer responsible to reimburse employees for tax preparation fees for EE’s amended return?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

CA Employer issues Corrected W2 forms to Employees. Is employer responsible to reimburse employees for tax preparation fees for EE’s amended return?

Only 1 former disgruntled employee complained, but she is one that has caused legal trouble for us in the past, so I want to be prepared with the answer. So as the employer, are we legally responsible fo reimburse her for any additional tax preparation charges she incurs as a result of the corrected W2? I believe the amended return may not even be necessary, as the IRS will sometimes issue a corrected calcuation that the EE can either accept or file their own. Also some people do their own taxes – so no charges, while some spend thousands of $ on tax prep – where does the line get drawn?

Asked on May 20, 2009 under Business Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

Well, from a practical standpoint -- you messed up.  Your employee depends on your calculations to ensure you provide him or her with an accurate accounting.  Your employee shouldn't have depend on what the IRS does or doesn't do to ensure an accurate tax filing.  If it turns out it costs your employee money, I would think you would want to avoid any legal trouble and pay for these out of pocket additional expenses.

Let's take it from a legal standpoint.  Who was negligent in the incorrect W2? You or the employee? If you, you should pay.  In other words, why should the employee incur additional costs due to your error. 

http://www.dir.ca.gov/dlse/DLSE-FAQs.htm


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption