fed taxes withheld


M

mari

I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?

TIA for any cogent responses.
 
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H

Helen P. OPlanick EA

I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
You can't. Unless you are an officer of the LLC.
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
No, again, unless you are an officer or have signing
authority. Then you will have a problem. But if not, the
IRS will still credit the taxes withheld from your checks to
your account (so will SS) and go after the responsible
parties.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote
 
P

Paul A. Thomas

mari said:
I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
You can't unless you are an authorized individual
(authorized by your company to get that information from the
IRS).

One thing to be concerned about though, is if you would be
considered a "Responsible Person" and therefore subject to a
penalty for not paying the tax. If you have the ability to
write checks, I'd seek legal counsel, fast.
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
No. Employees are treated "as if" the withholding reported
on the W-2's have been paid. Refunds will get issued, etc.
 
J

Jo Firey

mari said:
I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
Workers Compensation isn't tax, it's insurance. I don't
know what happens if a workers is injured and the coverage
has lapsed.

As to the payroll taxes, those withheld and others, if they
are withheld from your pay you get credit for the
withholding even if the employer doesn't pay them in. But
keep good records of what you are paid and what is withheld.
There is always a chance you won't get a W-2 on time at the
end of the year.

The biggest problem I see is for anyone who has anything to
do with preparing payroll or paying bills for this company.
The IRS gets very pushy in collecting payroll money and
will look to anyone who could have seen to it that they were
paid. And the penalties can go as high as 100%

It seldom pays to be one of the last rats off a sinking ship.

Jo--
"Dogs may have kept us company on the hunt, but it was
the cats who insisted we invent houses and discover fire."
-- Khiem Tran
 
C

CLJ1219

has stopped paying the workmen's compensation taxes.

First of all, these are not taxes. It is insurance.
#1: How can I find out if these taxes have been paid on an
ongoing basis?
Not your problem.
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
Again, not your problem unless you are the LLC.

Carol

If you awoke to find yourself a success, you weren't asleep.
Semper Gumby (Always Flexible)
 
A

Arthur L. Rubin

mari said:
I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
I don't think you can. There's probably a procedure to
ask the IRS and/or the state (employment) tax agency.
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
Anyone who COULD have paid the taxes or directed the taxes
to be paid is (probably) 100% responsible for the payment.
I BELIEVE the individual employee can take credit for
taxes withheld, even if never paid.
 
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H

Harlan Lunsford

mari said:
I work for a LLC which is in some pretty deep financial
doo-doo at the moment, and just found out that our fearless
leader has stopped paying the workmen's compensation taxes.
I suspect that he also hasn't been paying the income taxes
withheld from our paychecks to the IRS.

I have 2 questions:

#1: How can I find out if these taxes have been paid on an
ongoing basis?
#2: Are we responsible to the IRS for taxes withheld from
our pay but not paid to the IRS?
(feeling in a cogent mode:)

workmens' comp is insurance and not a tax, and youre in no
way responsible.

As long as you have evidence of the income tax withholding,
you have no fear, for even if you don't get a W-2 form
year's end, there are ways therefore to document that for
which you obtain credit. IOW, paying over those taxes is
employer's responsibility, not yours.

Cheer$,
Harlan Lunsford, EA in LA
 
E

Ed Zollars, CPA

Jo said:
Workers Compensation isn't tax, it's insurance. I don't
know what happens if a workers is injured and the coverage
has lapsed.
I believe in most states the employee still qualifies for
the benefit, but the employer may have a bit of a
problem--and, in some states, that problem may "expand"
similar to the responsible person issue for trust fund taxes
(the "LLC" may not matter).

However, the real answer to that question is going to
involve the specific state law.
 
M

Michael T Wing CPA

Jo Firey said:
Workers Compensation isn't tax, it's insurance.
That sort of depends on applicable state law. In WA it is
considered a "tax" because the fund is managed by the
government (not private insurance policies). And, if the
employer elects to withhold the small portion thereof that
is allowed to be withheld from employees, the employee can
claim a "tax" deduction for it on Schedule A (but the amount
is typically immaterial).

MTW
 
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M

mari

Harlan Lunsford said:
mari wrote:
(feeling in a cogent mode:)

workmens' comp is insurance and not a tax, and youre in no
way responsible.

As long as you have evidence of the income tax withholding,
you have no fear, for even if you don't get a W-2 form
year's end, there are ways therefore to document that for
which you obtain credit. IOW, paying over those taxes is
employer's responsibility, not yours.
Many thanx to everybody who responded.
 

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