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Anyone else had their severance hit by unpaid tax or pension?
« on: September 23, 2011, 06:57:14 pm »
SO Today was my last day.  To my surprise there was a figure of around 850K missing from my severence payment. 

Upon enquiry, my boss told me that they hadn't paid tax for me the whole year by mistake and thus they had to pay it now.

They said it was 10% of my salary and I argued no way do I pay that much tax.  Anyway I wanted as much as I could get today, so agreed and it's now in my bank (phew) and I said I would go into the tax office in my free time to check it out to which they said fine.  I will be sarting my new job in the same area, so no prob there and if they are bs'ing, then the tax office will sort it and I'll file at the labor office etc.

Weird thing is that my salary is 2.3mil so how is 850k (roughly, can't remember exact figure) ten percent of my salary X 13 months?  That would be like 2.9mil.

So wtf is this figure?????

IMPORTANT - Now I'm a brit and the pension is money down a black hole for us so we made a deal when  I signed the contract that as neither they nor I ever get the pension money back - why pay it....   So all year I didn't pay pension.

Pension is around 5% on my end right? I pay half, they pay half is how it should go?  Now I'm no maths whizz, but 5% of may salary for 13 months is still MORE than 850k!

I read on here abut another chap who was hit with 13 months of unpaid pension from his severance and the jist of it is that the national health and pension offices have merged and thus you can't pay one and not the other without the other finding out....

That 10% figure makes more sense also if we talk about pension, so I think that may be what they meant.

Is that true about the merger?  I was having health ins as I needed physio for a yr on my knees, so it owuld make sense if they merged and noticed I hadn't paid pension for a year. 

If that's the case, its a fair cop and I wave that money bye bye.

Guess I'll check with the tax office and then if they say it wasn't them and that my taxes were kosher, I'll (nervously for fear they'll want more off of me) go to the pension office and see what they have to say.

That could be risky as if my boss took the money but never declared it the pension office will want it off me and that will be another 850k...  and it will be hard getting it back from my ex boss...

Doh.

I kinda hope the tax office doesn't say it was for tax and that my taxes were paid and it's for unpaid pension - as if that's NOT the case and it WAS FOR UNPAID TAXES, I think the pension folks are going to find out soon enough - if this merger thing is true - that I went a yr without paying pension and then want me to cough up for it........   bye bye anohter mil or so....
« Last Edit: September 23, 2011, 07:08:38 pm by DWAEDGIMORIGUKBAP »


Re: Anyone else had their severance hit by unpaid tax or pension?
« Reply #1 on: September 23, 2011, 07:15:56 pm »
Hmmmm.  Maybe after I complained about the 10%, they cheked the real tax figure which I believe is usually around 3.5% and then deducted that?

That would be about 75K X 13 which is around 950....

Sounds more likely..

Crap, then I shouldn't go pension office and check it out or they might end up realising I didn't pay it for a year....

I think all I can do is check with tax office and if they say 'no it wasn't tax, you paid tax monthly without fail' then I'm over a barrel as EVEN IF my boss did steal the money I can't call pension office to check anyway or they'll find out I didn't pay it!  I don't call them - and I can never claim that money off of my boss officially WITHOUT it being looked into.... 

Man help me out peeps, am I missing anything here.... (other than the 850k)?