Roth Reimbursements and County Taxes

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stephanie
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Posts: 330
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    I'm defintely not a tax expert so hoping someone here can lend some expertise -

    We withhold county taxes on our MD employees.  We recently reimbursed an individual some money that was withheld through our roth plan,  The check from which  the money was originally withheld did not have taxable wages reduced by the deduction amount (as expected).  However, when reimbursing this individual using PR39 with a reverse deduction, the employee's county taxable wages was increased by the reimbursement amount, state taxes were not.  Any idea if this is correct?  Thanks for any thoughts before I head down the Infor and/or BSI route -