Is there any recourse for an employees who requested a change of w4 which the corporation received but did not submit?

I had marked exempt on my w4 after the vet clinic I work for was
bought by a corporation. After realizing my error I submitted a
revised w4 which was received by payroll. After doing my taxes I
realized they never changed my status from exempt. Now I owe a
substantial amount. Is there any recourse for me to take since the
corporation did receive my request and did not follow through?

Asked on March 9, 2017 under Employment Labor Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, there is no recourse, since while you feel that now owe a substantial amount, in reality, you don't: if the money was paid to you, for example, rather than withheld from your pay, at the end of the year, you still pay the same total amount in taxes (based on your gross income and deductions, etc.) and are still left with the same post-tax income. The only difference is the timing--taken out along the way, versus paid in a lump sum at tax time.  Since you don't owe any more taxes than you would have otherwise, there is no compensible loss here, and therefore no grounds for a lawsuit.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, there is no recourse, since while you feel that now owe a substantial amount, in reality, you don't: if the money was paid to you, for example, rather than withheld from your pay, at the end of the year, you still pay the same total amount in taxes (based on your gross income and deductions, etc.) and are still left with the same post-tax income. The only difference is the timing--taken out along the way, versus paid in a lump sum at tax time.  Since you don't owe any more taxes than you would have otherwise, there is no compensible loss here, and therefore no grounds for a lawsuit.


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