employer not paying taxes


J

jeannieg

my employer has deducted taxes from me for the past 3 months, paid us
by personal check and withheld income tax. I know for a fact that she
has not paid my taxes. Will i be held responsible? I didn't make
copies of the checks before deposit and don't have paystubs for these 3
months?
 
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P

Paul Thomas

jeannieg said:
my employer has deducted taxes from me for the past 3 months,
paid us by personal check and withheld income tax. I know for
a fact that she has not paid my taxes.

Now how do you "know" that? You don't know for sure if she has, or has not,
paid any withholding taxes.



Will i be held responsible? I didn't make copies of the checks
before deposit and don't have paystubs for these 3 months?



You need to recreate your gross pay, and you can get the deposit information
from the bank. From there you can recreate the withholdings. 7.65% for
Social Security and Medicare, and some amount for federal and state
withholdings.

If she doesn't give you a W-2 by the end of January, you can file your
return from your computations, but you can't e-file. Use a "substitute W-2"
form for this purpose.

And consider changing jobs on your terms, and don't wait till the IRS, the
state or the Department of Labor shuts her down.
 
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J

jmlieder

Mr Thomas has guided you right. I'm not sure how you think you "know" that
the employer has or has not actually deposited your withholdings or not, but
the true test will be if they issue you a W2 and correctly detail your gross
earning and withholdings.

The fact they pay you with a personal check doesn't necessarily prove
anything, however dumb that process may be. I have seen clients operate
that way, but yet be perfectly legit with the way they pay their employees.
Of course they generally get a discussion from us on how inappropriate that
is.

The point is, as Mr Thomas writes, if you employer is truly not paying your
withholdings, that should be an indication they are having financial
troubles and you probably don't have workmans comp coverage or unemployment
coverage as well. That all would beg the question, why do you want to work
for someone like that? I suggest taking a serious look at your employment
picture.

John M Lieder, CPA
Pueblo, Colorado
 

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