SECTION 710:90-3-7. Employer repayment of tax erroneously withheld from any employee

(a)   If during any quarterly report period an employer withholds more than the correct amount of tax from an employee, the employer shall not include on any report or pay over to the Commission the amount overwithheld if:

(1)   The employer repays the amount overwithheld before the report for such period is filed and before the end of the calendar year in which the overcollection was made; and

(2)   Obtains and keeps as part of his records the written receipt of the employee showing the date and amount of repayment.

(b)   Any amount not repaid to and receipted for by the employee or required in (a) of this Section shall be reported and paid with the report for the period in which overcollection occurred.

(c)   An employer may repay or reimburse an employee for tax overwithheld in any subsequent report period in either the same calendar year or in a subsequent calendar year. The employer may reimburse the employee by applying the amount overwithheld against the tax required to be withheld from wages paid the employee in a subsequent period.

(d)   If the employee is repaid, the employer must obtain and keep as part of the records the written receipt of the employee showing the date and amount of repayment.

(e)   If an employer repays or reimburses an employee for the overcollection of tax, the employer may adjust the overcollection by entering the amount as a deduction on the return for the report period in which the employer repays or reimburses the employee. The return on which the adjustment is entered shall have attached the following information:

(1)   A written statement explaining in detail the adjustment and the facts relied on in support of the adjustment; and

(2)   The return period in which the error occurred,

(3)   If from a previous calendar year:

(A)   A written statement from each employee that the amount of overcollection repaid or reimbursed has not been refunded or claimed;

(B)   A copy of the written receipt of each employee showing the date and amount of repayment or reimbursement;

(C)   Each employee's social security number; and,

(D)   The report period in which the error occurred.

[Source: Amended at 31 Ok Reg 2451, eff 9-12-14]