what reason or reason would an employer not take out federal taxes in payroll? Does the number of dependents matter? The reason why I ask is because my hubby's employer hasnt taken fed taxes out in like a month, where they have before...? what is going on with this? Is this their way of trying to screw us in the end?
2007-09-14 09:37:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Hmmm.....If they've deducted for taxes in the past and suddenly stopped, I would have a talk with the payroll person. Sounds like someone made a mistake somewhere in the payroll department. Maybe their software got screwed up....but definately bring it to their attention so that YOU don't get screwed at tax time with the IRS.
2007-09-14 09:45:27 · answer #1 · answered by Wolfie 2 · 0⤊ 0⤋
Check with the employer to see what changed. It is the employer's and the employee's responsibility to make sure that taxes are taken out of the paychecks. If the employer is trying to cheat the system then he or she could be in big trouble. They might have changed the software or goine with another company which might have screwed it up. If Social Security Taxes are being taken out it is definite sign that something in the paper work is screwed up. Yes, dependents do matter. Better check with the employer before it is too late.
2007-09-14 16:50:15 · answer #2 · answered by worldneverchanges 7 · 1⤊ 0⤋
Are they still taking out social se arcurity and medicare? If not, it sounds like they have arbitrarily changed him over to independent contractor status, which is illegal unless the terms of his job are not those of an employee.
If they are still taking the social security and medicare, but stopped taking out income tax, then it sounds like something was changed on his W-4. Yes, the number of dependents matter a great deal in the determination of what is withheld for income tax, so if that was changed, he needs to check that the new number of allowances claimed is valid. He should talk to his payroll department if he didn't change anything.
Taxes are pay-me-now or pay-me-later, so if he's not having taxes withheld and should be, he'll be paying it all when filing the tax return, plus possible penalties if the shortfall is high enough.
2007-09-14 18:13:47 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
Definitely make a phone call and talk to someone in payroll. The only reason I can think of that would not be accidental is overpayment.
2007-09-14 21:26:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋