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Can my employer get in trouble for not with holding enough tax?
Here's the situation. My employer, as it turns out, did not with hold the right amount of tax from my checks, as I specified on my W-4. In fact, from what I can tell from an online tax calculating tool, which includes wage and allowences, he only took about half the correct amount.
Now, normally I would think this is my fault by not paying attention to my paystubs, but here's the thing, looking at them. Only like 3 have a tax breakdown. The rest just says what my gross and net is, with no tax break down what so ever. Is that even legal?
Basically I'm looking for advice about what to do. From my whole year's income of $7,223, he only took out about $35. And now I own the IRS close to $400. Help?
Btw, I live in California.
Could you elaborate a bit?
Looking at my stubs again, I realize there's not even a gross total, just hours worked, dates, and the net pay.
Bostonian, I didn't raise hell about it before, because this employer is known for firing people for very arbitrary reasons. I absolutely cannot afford to loose my job. I know something is wrong, but it doesn't make sense to make myself homeless over the issue now does it?
Taxreff, that's not right according to the tables I've seen. The tax shouldn't have been a lot. And yes, I made a mistake in taking a 1 and not a 0. However, I should have had somewhere between twice, and three times as much taken out (hard to say for sure, as many of my pay stubs don't give this info).
I realize that the pay stub issue isn't really a tax issue, but it's the reason that I wasn't able to keep a close eye on my deductions.
Really I just want to know what I should do. Seek legal action? Make a report to the labor board? Should I bother talking to my manager about this?
Thank you, those of you who've tried to be helpful. But honestly, I asked what I can do now, not what I should have done. A lecture is 100% unhelpful to me, and a wast of your time. Being a douche bag is rarely an appropriate response. I've been polite, you should do the same.
5 Answers
- Bostonian In MOLv 71 decade ago
So, why were you not pitching a hissy-fit during the year when you got the incomplete pay stubs? It's a little late to be making noise about it now.
You owe the tax. And frankly, $400 is peanuts. If you owe less than $1,000 when you file there are no penalties for underpayment.
Edit: You don't want to raise the issue of inadequate pay stubs but want to pursue legal action? That will be great for your job security! NOT!
Employers are required by law to provide a detailed pay stub. Some states lay that out specifically in their laws while others follow the UCC requirement for detailed receipts for all commercial transactions. Either way, it's the law.
The bottom line is that you owe the tax and the under-withholding is not enough to raise the IRS' ire on the matter.
- taxreffLv 71 decade ago
I assume you are talking about federal withholding tax (not social security and medicare taxes). You do not mention what you listed on your W-4. At the gross income you listed, however, even if you listed single and zero on your W-4, he was very close to the correct amount of federal withholding. If you requested single and one, you would have had zero withholding for the year.
As far as your paystubs go, he is required to give you detailed paystubs each payday. However, that is not an IRS issue. Rather, that is under the jurisdiction of your state wage and hour bureau.
- Mike WLv 41 decade ago
In theory. The IRS holds an employer accountable for under-withheld taxes; therefore, the employer must pay the IRS the taxes owed even if it has not finished collecting the under-withholding from the employee. If the employer refuses to correct the issue, the employee should contact the respective taxation agency. The agency will investigate the matter, and if necessary, conduct an audit with the employer.
In practice, as long as FICA taxes were withheld, no one is likely to care very much ...
If you owe, you'll pay ...
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