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  Old  January 29th, 2010, 10:27pm     #1
*Harriett* is offline
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Tax Help: My employer did not take out Federal taxes in 2009.
i guess this is not really a vent, just trying to figure out what is going on.

To make a long story short.... I found a job in September, it does not pay much, but I am thankful for it. The boss is a real slacker though. He his a franchise owner of a few different stores.

Any way, I had mentioned to another employee today that there were no Federal taxes being taken from my paycheck. (I just assumed that it could have been because I was married, (I am a newly wed and this is my first time claiming married jointly). But as I spoke with other employees, he did not take out any on them either. One person was not even getting State taxes with held.

So I keep speaking with tax professionals, and I found out that, yes, he is suppose to take out Federal and State taxes.

When we brought this to his attention. He basically acted a A** and pretty much told us that it was our fault, based on what we claimed. But I know better than that. I thought that you are suppose to take out taxes regardless.

Anyone had a problem like this. I am thinking that this is illegal. Is there a tax benefit? What do you do if he refuses to correct this.

FYI
-No I am not a contract employer
-I am only claiming "1", It shows this on my check.
-I am not filing exempt
-I did receive a W-2 with nothing in the Federal Tax Box
-I am not an Independent Contractor

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  Old  January 29th, 2010, 10:42pm     #2
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Report him to the IRS. They have a 1800 number and an email where you can file complaints. Otherwise you will have to pay all of this 2009 tax witholding yourself. And you don't want to do this.
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  Old  January 29th, 2010, 10:45pm     #3
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Quote:
Originally Posted by julis55 View Post
report him to the irs. They have a 1800 number and an email where you can file complaints. Otherwise you will have to pay all of this 2009 tax witholding yourself. And you don't want to do this.
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  Old  January 29th, 2010, 10:46pm     #4
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The reason he is not taking out taxes is because he has to pay into SS. When you pay Social Security taxes he has to match when you pay... Sound to me that what he is doing is wrong and I think you should call the IRS.

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  Old  January 29th, 2010, 10:53pm     #5
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If he didnít withhold your FICA and Medicare - he has an issue and you should report him. If he didn't withhold federal withholdings either because of the number of exemptions you claimed on your W4 or your bosses miscalculation, ultimately you will have to pay. Federal withholding are reduced from your pay and remitted to the IRS. The employer is just the pass through. Your paycheck each week would have been less by the amount of federal withholdings. Since your check wasnít reduced for your federal withholdings during the year at the end of the year you must pay the tax.
Hope this helps.

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  Old  January 29th, 2010, 10:56pm     #6
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There was some sort of tax break where they weren't supposed to take any out (federal)up until you got to $400. Do you usually have more than$400 taken out of your check for Federal taxes each year? My son switched to 0 exemptions in April so that they would take taxes out of his.

Oh yeah, it was a stimulus tax break.
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  Old  January 29th, 2010, 11:10pm     #7
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As stated before, if he is not withholding any taxes (Social Security, Medicare, Federal, State (if applicable) and Workers Comp/SDI), then he needs to be reported. You may be able to report him to your state wage & hour board, as well as the IRS. If you filled out a W4 form, by law he has to withhold based on what you filed on that form.

If he is withholding state taxes, but your federal is 0 (is there a line item on your paycheck for federal, but there is nothing withheld?), and he is also not withholding Social Security or Medicare, then it is an IRS issue, and he still needs to be reported.

If the other taxes are being withheld, but your federal is 0, you can check online to see what your withholding should be at:

http://www.irs.gov/publications/p15/...link1000202368

This is the IRS Circular E. Go almost 1/2 way down and there is a huge table of numbers. You need the table that matches how you filed (married or single) and how often you are paid, then find your pay range and go to the column that matches your allowances (sounds like 1) and that will tell you what should be withheld on your paycheck.

Good luck.
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  Old  January 29th, 2010, 11:16pm     #8
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I see jail time in your bosses' future.
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  Old  January 29th, 2010, 11:27pm     #9
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I would be afraid to report him for fear of losing my job. I would make sure you pay the taxes and let the IRS figure it out. I'm amazed that the IRS and the state you live in hasn't figured this out. This is going to be an expensive tax bill. I would start looking for new work.


When I worked for Zales (yes the largest jewelry retailer) they didn't take NYC taxes out of my check. I never noticed until I went to do my taxes. Boy did I owe a LOT of money!! At the time they only had one store with in the NYC area and I was one of the few that lived in NYC and worked on LI. It only happened one year but it was enough. I was lucky and had some savings to pay it, other workers had to set up a payment plan with the IRS.
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  Old  January 29th, 2010, 11:34pm     #10
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Anything you report to the IRS is confidential. You should not be fearful of losing your job. You are not the only employee he is doing this to....
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  Old  January 30th, 2010, 12:04am     #11
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Quote:
Originally Posted by julis55 View Post
Anything you report to the IRS is confidential. You should not be fearful of losing your job. You are not the only employee he is doing this to....
This is correct. We reported an employer who was treating us as independent contractors even though we qualified as employees. IRS took care of things. We still had to pay our taxes which were significant. We stayed as employees for a few years after that with no recriminations.

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  Old  January 30th, 2010, 9:47am     #12
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You say that you received a W2 with a $0.00 in the Federal tax withheld box.

That leads me to assume that he did withhold SS and MC tax correct?

If that is the case, and the only thing not withheld is Fed & State income tax, you should check the IRS site and your state Department of Revenue site to try to calculate what your withholding should be.

If you are not earning much at this job, it is possible that no income tax would be withheld, depending on what you claimed on your W4. It is your responsibility to fill out your W4 correctly.
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  Old  January 30th, 2010, 11:13am     #13
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My mom worked for a dentist who did the same thing to her. In the end his accountant maid her file as an independent contractor, she was upset because she felt manipulated and he threatened to fire her if she didn't. Needless to say, she ended up quitting about a year later because he flipped out on her for using too much Windex when cleaning the office, refused to buy paper towels and offered patients a hand towel in the restroom and made homemade solutions rather than medical ones. Some people are just so greedy and inconsiderate I guess.
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  Old  January 30th, 2010, 12:48pm     #14
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I agree that is a Social Security scam. Yes, jail time is in his future, not yours. You may have a big tax bill!

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  Old  January 30th, 2010, 4:03pm     #15
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Thanks for all of the answers. They were very helpful.

FYI: My W-4 form is correct. There is only "1" withholding. It even says it on my check stub. He is taking out Social Security, Medicare, and State Income Taxes. I know it is on his part. Because I checked with other employees and most of them do not have Federal with held. And one person did not even have state with held.

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