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Texas FUTA tax?
What can be done about an employer who is deducting FUTA tax from employees pay and "adding" (aka hiding) it in the employees federal withholding taxes? Payroll lady told me I am taxed that tax and it's calculated into my federal withholding. I know that FUTA is not tax that employees are supposed to pay.
7 Answers
- A HunchLv 75 years ago
FUTA is federal employment tax.
Do you mean SUI (Texas)? State unemployment?
Are you confusing it with FICA?
What can you do? What does it matter? All it is doing is creating an extra withholding amount for you. When you file taxes, you will receive this money back as a part of your tax refund. Change your W4, if you want less withheld.
Let's say your bi-weekly gross pay is $1000 and your W4 is single 1 exemption.
average SUI in Texas is 2.7% for the first $9000 of income. = $27
In this scenario, your FIT is $95.82.
If the payroll manager is adding SUI to FIT = that means FIT was contributed at $122.82.
So when you receive your W2, the SUI will be included in the FIT amount and with simply be treated as additional withholding.
Add'l info:
No I'm not an idiot. That's why I understand that FIT is MY MONEY. If she wants to "say" that I pay SUI, and then she puts the money in FIT, all that means is she gave me additional withholdings because FIT is MY MONEY.
You also must be a really low wage earner if SUI is changing from a married with 2 exemption to a withholding of single with 0 exemptions. Since the HIGHEST amount in Texas is 7.47% of the first $9,000 in earnings = that's a WHOOPING $672. However, the AVERAGE is 2.7% which is $243.
I "bet" my W2 doesn't include that money??? You are worried about something that you don't even know. But what is more laughable is you think she is too dumb to know that SUI is not employee paid, but is smart enough to "steal" it later??? .
- but let's say she does... wouldn't you then ask her why the W2 doesn't match final 2015 YTD?
And on what planet does changing your W4, not change your withholdings?
- Bi-weekly pay for $1000 with married 2 = FIT of $35.96; change it to married 4 and FIT = $4.81.
- troLv 75 years ago
FUTA is an employer expense is not withheld from the employee and there is no way it can be included with the income tax withheld
you might write your complaint to IRS, giving employee number, and documentation of what is being done, ie. a copy of your pay stub etc to show what is being withheld
- taxreffLv 75 years ago
If you confirm the payroll woman is correct, you should file a complaint with your state wage and hour board.
- SlickterpLv 75 years ago
If it's listed as part of your fed tax, then you'll get it refunded when you file anyway.
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- Max HooplaLv 75 years ago
You can't hide it in employees withholding. Something in your narrative doesn't add up.
- Anonymous5 years ago
The payroll lady is an idiot.