Wells Fargo & Co. (NYSE: WFC) implemented a temporary fix to address a tax-withholding glitch that had caused financial advisers to nearly revolt at the beginning of the year.
The 11,000 advisors from Wachovia Securities were moved into Wells Fargo & Co. (NYSE: WFC)’s payroll system in January, which automatically withholds 25% of commissions for taxes, regardless of their bracket, making an issue for those that would fall into higher or lower tax brackets.
The San Francisco-based bank has made a change so that advisers can opt into a new system which allows them to set an appropriate level. Brokers will continue to be paid in two monthly installments. The first period will include 45% of the broker’s average monthly payout from the past three months and the second will include the rest of that month’s earnings. A company spokeswoman said that a new permanent system will be put into place next year.
Wells Fargo & Company is a diversified financial services company. The Company provides retail, commercial and corporate banking services through banking stores located in 39 states and the District of Columbia. It provides other financial services, through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. As of December 31, 2009, the Company provided banking, insurance, investments, mortgage and consumer finance from more than 10,000 stores under various types of ownership and leasehold agreements.
Shares of Wells Fargo & Co. (NYSE: WFC) traded up 3.63% during mid-day trading on Wednesday.
