As a preface, I'd like to state that I fully intend to report and pay my taxes come due date. I would just rather pay them all at once rather than have them deducted weekly.
I live in NJ and work in NY City (in case that makes a difference). Is my employer required by law to withhold taxes weekly? Can I elect not to pay taxes weekly? If my employer MUST deduct, can I legally misreport on my W4 to have decrease my withholdings (claim to be married, add additional exemptions)?
I appreciate any help.
2007-09-06 17:55:20 · 6 answers · asked by Bas A 2 in Business & Finance ➔ Taxes ➔ United States
Employer has to withhold social security tax (6.2% of gross pay) and medicare tax (1.45%), but does not have to legally withhold either federal or state. If you had high enough exemptions claimed on your W-4 to not have federal or state taxes withheld, then your employer wouldn't withhold them. The big problem is that if you'd be doing tax fraud. Also, if you owe more than $1,000 in federal tax, you would be hit with an underpayment penalty (state would depend on what state you live in, MA for example is $400). So, it's not really in your best interest to try and wait until April 15 to pay all of what is due.
2007-09-07 06:38:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your employer is required by law to deduct your taxes from your pay each time you are paid. This fact alone requires you to elect to pay your taxes out of every check. Why would you want to lie on a government form, the W4? Taxes are a part of life, so just accept it. Let the fact that taxes are so outrageous make you politically conscious and active. You're paying for it, after all.
2007-09-07 01:06:34 · answer #2 · answered by No Shortage 7 · 1⤊ 0⤋
If you do not have enough withholding--and zero is not enough--you must make quarterly payments of estimated tax until IRS tells your employer to disregard your W-4 and withhold at the Single-0 Allowance rate.
2007-09-07 01:08:41 · answer #3 · answered by Anonymous · 1⤊ 0⤋
No, you cannot legally not have taxes withheld by your employer. Nor is it legal to misstate your withholding allowances to have too little tax withheld.
Taxes are due when the income is earned, not when the return is filed. If you haven't paid in the majority of your tax liability when you file you are subject to penalties and interest for underpayment of tax.
2007-09-07 07:41:23 · answer #4 · answered by Bostonian In MO 7 · 3⤊ 0⤋
No, you can't have taxes not withheld by your employer if you are in a job as an employee. If you file a false W-4 so little or nothing will be deducted, you will be committing perjury - read the line above your signature on the W-4.
2007-09-07 01:55:42 · answer #5 · answered by Judy 7 · 1⤊ 1⤋
As long as the employer has your social security number he will report your wages as buisness expenses, therefore if you lie on your taxes you will get caught. I would recommend having it taken out of your weekly check. Just claim higher exemptions, but be prepared to pay later.
2007-09-07 01:04:51 · answer #6 · answered by Jess 2 · 0⤊ 1⤋