I usually take home about 50% of my gross pay, but my latest paycheck after the company switched payroll systems shows I’m only taking home $1,824. This doesn’t seem right at all. What could be going on?
What’s up with the $7,883.50 commission deduction?
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
If that’s true, it should be under the tax section and clearly labeled. This looks more like a clawback or an adjustment for previously paid commissions.
@Tate
You’re an EA, right? Why is FICA being calculated on the full $17,600 when there’s a $7,000 clawback? That seems like a mistake.
Sky said:
@Tate
You’re an EA, right? Why is FICA being calculated on the full $17,600 when there’s a $7,000 clawback? That seems like a mistake.
Maybe they advanced him the $7k earlier? Just a guess, though.
Sky said:
@Tate
You’re an EA, right? Why is FICA being calculated on the full $17,600 when there’s a $7,000 clawback? That seems like a mistake.
The $8K in the deductions section looks like it was a non-taxed commission advance. Now it’s being reclassified as taxable settled commission, along with another $3K in new commissions. This could explain the $11K in taxable commissions. By the end of the year, any remaining non-taxed advances will likely be treated the same way, so expect more withholding then too.
Sky said:
@Tate
You’re an EA, right? Why is FICA being calculated on the full $17,600 when there’s a $7,000 clawback? That seems like a mistake.
If it’s a clawback, I’d expect it to be reflected in the gross income section.
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
This doesn’t sound like taxes. It’s more likely something related to commissions, like a clawback for a canceled sale or an adjustment for something you didn’t actually earn.
@Taylor
I agree. This looks like a chargeback for something like a canceled sale. You shouldn’t be taxed on income you didn’t receive.
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
Tell them your pay stub shows $15,810 in taxes on $17,634 gross income and ask if something’s double-counted. Send them a screenshot of the pay stub—it might help them see there’s a problem.
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
It doesn’t make sense for this to be part of your taxes. Something’s definitely off.
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
What exactly did they say? You should push for a clearer explanation.
Tate said:
What’s up with the $7,883.50 commission deduction?
They’re saying it’s part of my taxes.
No way this is related to taxes.
Tate said:
What’s up with the $7,883.50 commission deduction?
Could this be a draw against future commissions?
The tax lines seem normal, but the big negative commission deduction stands out. It could be a clawback for commissions paid earlier, or a mistake in how it was coded in the new system. Definitely reach out to HR to clarify.
Florence said:
@Peyton
This looks like a commission clawback. Maybe a sale got canceled or returned?
It could be, but it’s odd that it’s a post-tax item. If this was a clawback, it should have reduced the gross commissions upfront. This might be an error from transferring to the new payroll system.