Money Matters: Watch for tax errors on your paycheck

October 13, 2017 01:30

Sponsored by NEFE

Surveys show more than half of Americans experience a paycheck error at some point in their careers. Small mistakes can add up to big problems, so it's important to review your pay stub from time to time. Simple mistakes like a spelling error in your name can usually be quickly corrected, but a mistyped Social Security number could cause long-term problems. Apart from some of the obvious problems, small errors sometimes sneak by.

As outlines, sometimes employees can be mis-classified as independent contractors. You can spot it because taxes for contractors are not withheld. Some employees live in one state and work in another, and end up having taxes withheld for the wrong state. You may end up having to file in both states to correct the problem. And some employers may be taking out too much (or too little) for city taxes. Some may not include them, others may include them but forget to not pay them when the employee is working outside the city limits, such as on a business trip.
To help your viewers/readers/listeners learn more about payroll tax issues, talk with a certified public accountant or tax preparation service in your market. They can explain the basic rules of how taxes are withheld, and offer suggestions to make the most out of your paycheck each month.

Sponsored by the National Endowment for Financial Education
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