Underneath my pay stub, there’s a section that is listed as contest. Usually, nothing is paid to that category. Maybe like three times a year I’ll pay $10 towards it. I figured i was paying taxes on contests i had won at work - ie gift cards, prepaid visas, items, etc.
This pay period they took out $200. They took $500 out of another coworkers paycheck. HR is just saying it’s correct but will not give any details. What the hell is that category? And where is my money going to?
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Answers & Comments
Did you win something at work that is valued at $200 and did the other co-worker win something valued at $500?
Is the money being ADDED to your check, making it imputed income for taxation purposes?
- Some companies will add the money to the wages but deducted so that it acts like imputed income .
Imputed income is non-cash income. For example: if at the Thanksgiving party you won a prize worth $200, then the company is required by payroll law to charge you payroll taxes on the $200 prize.
Ask your payroll people.
ask your employer
real good question. I'd keep pressing HR or payroll about it.
You need to ask your payroll department. HR is clueless on matters of payroll.
They need to be able to tell you specifically what it is for, not just that it is "correct".
You have a legal right to be informed of the reason for any deductions from your pay check, if HR aren't doing so, threaten them with legal action. A brief search hasn't given me any results for a 'contest' category in standard payslips.