A, a nonresident alien, is entitled to a RIB of $500.00 effective 11/95 ($372.50 after
withholding $127.50 tax). His benefit is increased to $520.00 effective 12/95 ($387.40
after withholding $132.60 tax). In 5/96, it is determined he was not entitled to a
benefit for 11/95. He is asked to repay the $372.50 he actually received for that
month. In 7/96, action is taken to withhold the $372.50 from the $387.40 which would
be paid to him for 7/95.
Amount Payable |
|
$387.40 |
Withheld to Recover Overpayment |
|
-372.50 |
Paid to A for 7/96 |
|
14.90 |
Administrative Adjustment for 7/96
Withheld to Recover Overpayment |
|
$372.50 |
Payment to A |
|
14.90 |
Tax Based on Payment to A |
|
+5.10 |
|
|
392.50 |
MBC |
|
$520.00 |
|
|
-392.50 |
Administrative Adjustment |
|
127.50 |
For accounting purposes, $500.00 ($372.50 withheld plus $127.50 administrative adjustment)
is shown on the annual statement as the amount withheld to recover the overpayment.