Legal Question in Business Law in California

My employer has not been paying my SDI Withholding tax for the past five years; the error was discovered through an internal audit; my question is should the employer be responsible for paying the state back for the past five years. My employer is asking me to pay back the past year $1040.00; how should I handle this?

Asked on 5/29/13, 6:10 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law
0 users found helpful
0 attorneys agreed

You didn't say whether the failure to pay also includes a failure to deduct. If the employer has deducted the SDI but hasn't remitted it to the state, the employer bears the full responsibility. If, however, the employer hasn't deducted the SDI from your pay, it's perhaps proper for the employer to ask the employee to accept and be responsible for the deduction retroactively. There is also a legal argument that the employer, having goofed up, cannot go after the poor employee at this stage. There is a general rule of law that when X receives a benefit from Y that X really shouldn't receive, but due to mutual mistake does, that when the mutual mistake is discovered, X doesn't need to cough up the benefit to Y IF two conditions are present: (1) BOTH parties were ignorant of the mistake at the time it was made, and (2) X has significantly changed his/her position in reasonable reliance upon the error. If you can't work it out with the employer (which I recommend trying, if you like your job), then please feel free to contact me for a no-obligation consultation.

Read more
5/29/13, 8:36 pm

Related Questions & Answers

More Business Law questions and answers in California

Looking for something else?

Get Free Legal Advice

8817 active attorneys ready to answer your legal questions today.

Business Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
David SlaterDavid P. Slater, Esq.Boca Raton, FL
Phillip D. Wheeler, Esq.Phillip D. Wheeler, Attorney At LawMorro Bay, CA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now