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I just don't understand how this is fair or makes sense? It makes me not want to travel anywhere especially NY or California if I have to pay those taxes? My salary is 100% based on Texas cost of living.
What is a “true up”?
The company will give you some sum of money to make you whole. So that you’re not financially penalized for working in a higher tax state than your resident state
What firm? I thought most big 4 / MBB true you up on state taxes directly in your paycheck withholding amount. Check individual pay stubs for those periods to make sure.
Most firms will gross you up. Deloitte did it through a TJAR (Tax Adjustment Report) to make you whole.
Agreed with C1 - ACN does a tax true-up as well
Do you have to request this? Or is it automatic ?
Where do you work? KPMG will ask true up
I have been traveling for under a year and they reimburse my taxes. Agreed it’s total BS they don’t help you out unless you initiate the ask. Reach out to the Tax Allocation Services group (should be able to find an email via a quick search). They will have you fill out a small spreadsheet of your travel dates and locations and will require manager approval, but you’ll be able to recover the money
You usually have to request this. It’s because sometimes you’ll come out ahead (work in low tax state). At Deloitte at least, they would ask you to repay the difference.
The goal is to make sure that if you would have made $5K in California after tax, that’s what you got. If you actually made $4.8K they’d give you the $200, but if you actually made $5.2K, they’d ask you for a check for $200, that’s why you need to request it.