Expert: Arthur Naman - 4/16/2010

Question
I am a salaried employee.  My employer mistakenly dated all its employees final paycheck of 2009 as 12/31/09 instead of 1/1/10, giving me 27 payperiods instead of 26.  This increased everyone's 2009 pay by the amount of one check, and thus, unexpectedly, everyone's tax liability.  According to my accountant, I had to pay $2000 out of pocket additional state/local income tax directly as a result of this mistake.   This "extra" paycheck was not really extra -- it was the check I'd have received anyway dated 1/1/10, so it wasn't a windfall, did not represent extra money to my budget -- but their mistake did cost me $2000.  I brought this to the  attention of our accounting office and asked for them to reimburse me in the amount their mistake cost me.  They said, of course, "no," and I wasn't surprised.  But then they tried to cover up their mistake -- first saying there were only 26 pay periods, then saying that there were 27 but they did it on purpose.  I asked, then why they would choose to pay everyone more than their yearly salary, wouldn't that cost the organization a huge amount of money on its 2009 books?  Why did my 2009 27th check include the 2% pay raise for 2010?  If this was intentional, why didn't they just spread my (and everyone's) true salary among 27 paychecks?  They didn't answer, just said that if I returned the gross amount of my check, they would re-issue a 2009 W2 that reflected my true salary.  Of course, that's rediculous, I've already paid my taxes.  I'm not an accountant, but all this sounds pretty fishy to me -- I think there's some ass-covering going on in the accounting office and I am suspicious the presdent of the organization hasn't even been told of this mistake that cost the organization so much...

Answer
I do not know if there is an "answer" to this question.

I would presume that the total wages for two years, 2009 and 2010 will be correct; that you will receive 25 pay periods in 2010.

As long as you did receive the salary I think you are in as good a shape as can be expected.

Your employer, as would be the case with most, was unwilling to admit their error.