COBRA payment in severance pay

Bankruptcy and Debt 2 views 1 answers
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?

Attorney Answer

1
Neil Pedersen ·
Not really. You are asking us to get into the head of the employer. You need to ask the employer to explain it clearly. It makes no sense that you would get $1200 and have to pay back $2,338. You are required to pay back that which you were not entitled, but that does not mean you have to pay back more than you got. Good luck to you.
0 upvotes

People Also Asked