2007-02-26 02:03:37 · 8 answers · asked by egyptianprincess 1 in Business & Finance ➔ Taxes ➔ United States
The employer withholds taxes based on how you completed the W4 when you were hired. Did you claim exempt? if so you basically told the employer that you were exempt from federal taxes. It could also be that each weekly or bi weekly paycheck did not meet the federal tax limit for federal withholding.
You need to review your W4 and make the adjustments to ensure that taxes are properly withheld
2007-02-26 02:10:41 · answer #1 · answered by Anonymous · 4⤊ 0⤋
If they didn't take out social security either, then they probably have you classified as an independent contractor, which means that if this classification is correct, then you are responsible for paying all of you own taxes, including both the employer and the employee halves of social security. You'd probably be required to file quarterly estimated returns.
If you got a W-2, then you are classified as an employee. If that's the case, they'd have taken out social security and medicare, and your income tax withholding would be controlled by what you put on the W-4 form you filled out when you started the job. If you checked "exempt", or showed a high number of allowances and have a low income, then there might not be anything withheld.
If your total tax owed isn't zero, then you'll have to pay whatever you owe for 2006. Check with your employer to be sure they take out the right amount this year.
Didn't you notice until now that they weren't deducting anything, and wonder about it?
2007-02-26 11:29:14 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
When you completed the paper-work after you got the job, you would have completed an IRS from W-4. This form is where you would tell your employer your withholding status (married or single) and you exemption amount (how much exemptions you are claiming). It could be that you "claimed" a high number of exemptions on your W-4.
You should review and update you W-4 every year .
2007-02-26 10:18:43 · answer #3 · answered by C B 1 · 2⤊ 0⤋
The amount withheld depends upon your wages and the number of withholding exemptions you claimed on your Form W4. Since you didn't post that information, it's not possible to say why no tax was withheld, other than none needed to be withheld based upon your income and W4 exemptions.
2007-02-26 10:54:04 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Whenever you completed you w-4, if you put "exempt" thinking that you were not claiming any exemptions, you were mistaken.
Go to www.irs.gov, individual, withholding calculator. Complete this worksheet and it will give you your correct w-4.
good luck & bless
2007-02-26 10:49:28 · answer #5 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
Withholding is NOT up to the employer. It is required by law.
Are you certain they don't consider you an independent contractor. Didn't you notice you weren't having any taxes withheld? How could you not notice that?
2007-02-26 10:12:55 · answer #6 · answered by Box815 3 · 2⤊ 3⤋
Withholding federal tax is completely up to the employer. Some companies (and private business) choose not to withhold federal tax. This means that you will need to keep that in mind for tax season so you can put aside enough to cover anything you may owe. As to why, I'm not really sure. Though I think it means less paperwork on their part if they don't bother with reporting
2007-02-26 10:07:30 · answer #7 · answered by Anonymous · 0⤊ 6⤋
did you fill out a w-2
are you sure that would be unusual ?
did you put exempt on your w-2 ?
2007-02-26 10:07:51 · answer #8 · answered by just me 4 · 0⤊ 5⤋