When do I start paying federal taxes for a new job in WA?

Question

I started a new job and after 3 days I realized that the owner of this business wasn't somebody who I wanted to be associated with...at all. So I quit.

I talked with the guy about getting paid for the 3 days I worked and he tried to tell me I only worked 2 days. Because of this, and several other reasons, I think that he is going to try to rip me off somehow when I get paid on the 15th of June. If he pays me for the 3 days I worked I should be getting $400, but I wouldn't be surprised at all if he tries to write me a check for $300 or so and say the rest went to taxes (but not report it or send it in to the government).

So my question is: Is there a law that states that an employer can't start taking out money for taxes until the employee makes a certain amount? I remember hearing something about this, but I'm not sure if it is true. What I heard was that employers can't start taking taxes out until the employee makes his first $500 with the company. Is this true? Resources?

Thanks!

Answer 1

I have been a tax accountant for 27 years. Your information is nearly correct but it only applies to independant contractors, not employees (and the amount is $600, not $500). The employer begins withholding with the first paycheck. He is supposed to deposit the withheld amounts (and employer contributions) with a financial institution (usually a bank). How often the deposits must be made is determined by the total amount due since there are various deposit levels and correlated time requirements.

If your employer does not pay you the gross, you are legally entitled to receive a pay-stub showing all amounts deducted. If you don't get a stub, you should turn the guy in. If you do get a stub, you should also get a W-2 form at year end. If the W-2 doesn't come (or the amounts differ from the stub) saving the stub will allow you to file a substitute W-2 form, attaching the stub as evidence, so you will be credited for any taxes withheld from your pay when you file your taxes.

If the employer does not pay you for all days you worked, consider filing a small claims action in court or a complaint with the labor commissioner. In most states the employer is liable for treble damages (three times the amount) for failure to pay a worker for his time worked.

Answer 2

He would still be required to take out taxes if you were working as an employee. When he pays you, he must give you a check stub or other statement showing what was withheld - then at the end of the year, he must give you a W-2 for those same amounts. Be sure to save the check stub or earnings statement in case he's not around by then, or doesn't give you your W-2.

Answer 3

Did you fill out and turn in a W-4 and an I-9 to the employer. All employers by law must have the above filled out, signed and turned in before you can even go to work.

Answer 4

Taxes are owed on the very first nickel. The check stub will give the breakdown on taxes withheld; there will be two flavors of Social Security, plus (probably) Federal income tax. (Washington has no state income tax.) When you get your W-4 next January, be sure to compare the figures.

Answer 5

as soon as you started your first second on the job, welcome to America. if you make one dollar the one dollar gets taxed just not as much as if you made three dollars.