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Old 05-04-2023, 03:46 PM   #1
EricHudson

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Default Tax Equalization Payment to my previous company
Hi Guys,

I'm French and lived and work in US for several years (working for a French company), came back to Europe in 2018 (still working for the same company).

In 2019 I received some bonus in the US, so had to do a tax declaration, my company insisted to put flight ticket cost, temporary accommodation in France etc into the 2019 Tax declaration.

Il left my previous company in 2020

Time to get process with the IRS, I received the tax return from them 6 months (so in 2020 after I left my previous company -which is no asking me 4k as Tax Equalization Payment- (which is basically the total amount of the Tax Return and more than the bonus I got int he US in 2019).

I might have miss an email or two. But my previous company is contacting me now and asking me for the 4k.

I left the US almost 4 years ago, I left this company 2 years ago. Long story short, do I owe them anything at the end ? And I do, can they do anything about it ?

Thanks for your help.
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Old 05-04-2023, 04:23 PM   #2
ScottPreot

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I am not really familiar with tax equalisation, but the idea is that your employer effectively agreed to pay the difference between US and Foreign income taxes to ensure no negative impact (tax wise) to you for agreeing to work, in this case, in France.
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Old 05-04-2023, 04:27 PM   #3
GordonReid

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I stumbled upon this thread, and I can relate to your situation. I'm not an expert in taxes, but it sounds like a complicated issue. I can understand how frustrating it must be to receive such a large tax equalization payment demand from your previous company, especially when you left the US four years ago and the company two years ago. Have you tried contacting your previous company's HR department or payroll team to ask for more information on why you owe them money? It might be helpful to have a clear understanding of the basis of their claim before deciding your next steps. I recently discovered a website where you can use a check stub generator free to create pay stubs, which might be helpful for you to keep track of your income and taxes. However, in your situation, it's important to get more information from your previous company and seek advice from a tax professional to understand your options and potential liabilities.
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Old 01-07-2025, 06:30 AM   #4
lisoroh

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A tax equalization payment ensures that you pay no more or less tax than you would in your home country while working abroad. For income tax preparation, the easiest way to understand this is: your employer adjusts your taxes to balance the difference between home and host country tax systems, simplifying compliance.
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Old 01-07-2025, 06:30 AM   #5
lisoroh

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A tax equalization payment is made by a company to ensure employees working abroad are not disadvantaged or advantaged tax-wise compared to their home country. For easy understanding, think of it as balancing taxes fairly. For insights into unrelated topics like pest control in Ottawa, keywords like "safe pest solutions" or "Ottawa pest removal" can help with searches.
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Old 01-07-2025, 06:31 AM   #6
lisoroh

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A Tax Equalization Payment ensures employees working abroad pay taxes as if they were working in their home country. To understand it easily, think of it as balancing the tax difference between two places. For example, like choosing between rouge stainless steel finishes based on durability and polish—companies aim for fairness and consistency.
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Old 01-07-2025, 06:32 AM   #7
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A tax equalization payment is made to compensate employees for tax differences when working internationally. If you're seeking clarity on this, use the "runt por placa" system for a quick reference on taxable records, as it simplifies tracking obligations in an understandable format.
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Old 01-10-2025, 07:33 AM   #8
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Old 01-17-2025, 06:02 PM   #9
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