A friend of mine just found out that no federal tax was taken out all year and now owes the IRS almost $5K. In hindsight, she should've checked her paystub, but when she approached her boss, she blamed my friend saying it's because she only took 1 withholding (which is not true), then said it was the paycheck company's fault. She knows she can get on a payment plan with the IRS, but she's still really upset about how her boss handled it. Wouldn't an employer who uses Quickbooks catch an employee who didn't have a "federal tax" line on their paystub? Should she see a tax attorney?
2007-02-07 05:01:11 · 14 answers · asked by Andrea K 2 in Business & Finance ➔ Taxes ➔ United States
Update - SS and Medicare was taken out properly.
2007-02-07 05:29:21 · update #1
It's possible for an employee not to need to have federal tax taken out, so no, the software would not flag that as an error. And if she had filed a W-4 with one allowance, and made enough money that she now owes $5K, then something would have bene deducted.
In any case, even though it sounds like her boss really handled her complaint badly, the problem is hers. She owes the money and will have to pay it. There's no point in seeing a tax attorney.
2007-02-07 13:57:02 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
1099 is what you get when they don't take out any taxes
Unless the employee agreed to that she needs to call HR find out why!
2014-04-28 09:29:34 · answer #2 · answered by Tapestry6 7 · 0⤊ 0⤋
Sorry the only thing left to do is to pay, I've done a couple of forms like that and there is no way you can get around that. Now you need to ask for a new W-4 at work and fill out the form and give it back to your employeer so they can deduct the right amount from her check. A good way to figure the right Federal withhold for a single person is ALWAYS check the federal id more than Social security IF NOT something is wrong.
2007-02-07 05:56:34 · answer #3 · answered by Nita 2 · 0⤊ 2⤋
It is the responsibility of the employee to ensure that their withholding is correct. The employee tells the employer how much to withhold by filing a W-4. If the employer is not following the W-4 and not withholding taxes based on what the W-4 says, then it is still up to the employee to question it when they get their paycheck and the paystub shows no withholding.
2007-02-07 05:11:24 · answer #4 · answered by jseah114 6 · 2⤊ 2⤋
Yes, they can take it. I have had it happen before. I am just responding in case it is a situation like mine and the state of North Dakota totally messed up and took it without reason. My son had been in that state with my brother due to behavioral problems and they just decided that they would use an old order from here in Texas that had already been closed. Anyway, there are exceptions to the thought that anyone with a child support problem is worthless. They actually took mine when my son was already 18 and serving our country in Iraq.... go figure. But they did give it back. People should be nice. :)
2016-03-29 09:35:28 · answer #5 · answered by ? 4 · 0⤊ 0⤋
A EN-587 form could possibly prevent the IRS from collecting, but only if its signed in conjunction with a 1049-P which has 2 cosigners. Also, you'd have to be 35 years or younger and have worked 5 jobs in the last 10 years where the total income of said jobs did not exceed 50,000 in one fiscal year, and be a permanent resident of the US for at least 15 years.
2007-02-07 05:12:22 · answer #6 · answered by conventional 4 · 0⤊ 2⤋
She should contact the IRS. the company should have paid in for her medicare and SS. For now she is responsible. Contact a tax attorney as well to ensure that she doesn't get stuck with all of the 15% for SS and Medicare.
2007-02-07 05:12:19 · answer #7 · answered by navy_hobo 3 · 1⤊ 1⤋
She is responsible for making sure that the right taxes are taken out of her check. If the company doesn't take them out then she can get a form and pay the taxes herself quarterly, or put the money into and escrow account and pay her taxes when she files her income tax. Right now the money she owes she can make arrangements to make payments until it is paid off. If not any refunds she gets can be taken from her automatically until it is paid off no matter how long it takes. She can even have her wages garnished.
2007-02-07 05:17:15 · answer #8 · answered by witchypoo 4 · 1⤊ 2⤋
Many employers have contract laborers that they do not collect the taxes for. Your friend is responsible to see that they deduct the taxes from each and every check she receives regardless of who prepares them.
Now if the employer claimed to deduct monies from her, but failed to pay it in to the government then she has reason to see an attorney, otherwise there is no reason to.
Best to consider it a lesson well learned and I bet she'll never allow it to happen again. Sad but true!
There are only two things guaranteed in life: death and taxes
2007-02-07 05:25:16 · answer #9 · answered by allannela 4 · 1⤊ 2⤋
I paid social security and state though
2017-01-28 00:08:19 · answer #10 · answered by Oakie 1 · 0⤊ 0⤋