If for the last 15 months I’ve been taxed on my monthly car allowance but recently discovered that my employer never put it in writing that they would this allowance as a wage, am I entitled to reimbursement?
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If for the last 15 months I’ve been taxed on my monthly car allowance but recently discovered that my employer never put it in writing that they would this allowance as a wage, am I entitled to reimbursement?
I recently sat through an exit interview with my employer as i decided to move on after 15 months of working there. While complaining about the lacckluster salary and bonus potential, I asked why my car allowance was taxed as income? The HR manager could not answer that and upon reviewing my original hire paperwork, could not verify that they ever put it into writing. She immediately sent an email to corporate HR asking for them to make a change to all new hire paperwork moving forward to mention the car allowance as a form of taxable wage. Does this sound like a class action lawsuit? This company employs probably 10,000 people or more and it sounds like none of them probably got this in writing either.
Asked on January 2, 2019 under Employment Labor Law, Nevada
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
No, you are not entitled to compensaton or reimbursement, since legally they did nothing wrong: a car allowance IS a wage. It is compensation you get for working, not dollar-for-dollar reimbursement of expenses you incurred and put in receipts for. It is no different from your salary or wages or a bonus, as it is money your employer pays you for doing your job. Therefore, if it was taxed, it was handled properly and there is no claim.
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