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Reimbursing old employees for erroneous calculations

Hello- we just discovered that back in 2011 some seasonal employees for a summer camp were over taxed for their NJ Family Leave tax. The amounts due to each employee range from $0.09 to $2.45- with the majority being less than $1. Please advise- must the funds be returned to the employees? Thank you.

Comments

  • Were the funds deposited with NJ? If so, can you claim a refund at this point? Seasonal employees at a summer camp may be difficult to locate 6 years after the fact. Check the NJ unclaimed property rules to see if you need to turn the money over to NJ for the employees to file claims if you retained the funds. If you paid it into NJ, then it is likely too late for either you or the employee's to file a claim for refund. The thing is, the employer should not profit from such mistakes. If it was withheld but not paid to the state, you may need to pay it to the state if it is not refunded to the employees.

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