COBRA payment in severance pay
I was laid off in November and received my severance pay along with COBRA in December 2014. My company paid me twice my accident. I reached out to them in January 2015 to advise them on the error they made. They have asked me to return the additional severance pay - which I understand. They have also requested to return the COBRA payment of $2,338 (which is before taxes). I received the deposit amount of $1200 after taxes.
I questioned why would I have to pay them an amount higher than what I received, their response was , You now owe the gross amount because the overpayment has crossed years and it was a grossed up item- meaning you received the full benefit amount and XXX company assumed the liability for the taxes.
Can someone help understand why I should be losing money on this?
