My job isn't taking taxes out on me?

Question

I've been working for a month and a half now. I've received 5 checks from the company and they haven't taken out any federal taxes on me. I make 8.50 an hour, full time and I claimed 4 on my W-4's. I told my boss and she said that it was because I got paid every 2 weeks and it makes a difference. I do not know anything about taxes, but i have had jobs in the past that took out taxes every 2 weeks. Is the company cheating me out? Will t6his affect me when I file taxes? Or can I leave it like that and still get my EIC for the 3 kids??? Help!!! Thanks!

Answer 1

I would like to ask you if they are taking out Social Security-Medicare taxes for you?

Here is something from the Internal Revenue Service:
What can be done if an employer will not withhold income taxes, social security, and Medicare from my pay?

Generally, if an employer does not withhold income taxes, social security, and Medicare from your pay, you are being treated as an independent contractor (self-employed person).

http://www.irs.gov/faqs/faq-kw54.html

If you believe an employee relationship exists and you cannot resolve this matter with your employer, you should submit a Form SS-8 (PDF), Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

http://www.irs.gov/pub/irs-pdf/fss8.pdf

The factors used to determine if an employer-employee relationship exists are covered in Chapter 2 of Publication 15-A (PDF), Employer's Supplemental Tax Guide.

http://www.irs.gov/pub/irs-pdf/p15.pdf

If your status as an employee is not at issue, it may be that you are in a category of employment whose earnings are not defined as wages under U.S. federal tax and social security law.

Find out from your employer the reason that social security and Medicare taxes and income taxes are not being withheld from your pay. If you have further questions, contact the IRS at 800-829-1040 or visit an IRS walk-in office for assistance.

References:

Form SS-8 (PDF), Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Publication 15-A (PDF), Employer's Supplemental Tax Guide
Publication 1779 (PDF), Independent Contractor or Employee

Answer 2

2

Answer 3

Look at your check stub very carefully. You should have something being taken out for 'Social Security' ... that is not a 'tax' and it's something EVERYONE needs to pay. If that is being taken out, but no taxes, then you should be 'okay' when it comes time to file your tax return, and you should get your EIC. If there is NO Social Security taken out, then you do have a BIG PROBLEM, but YOU are not 'responsible' ... call the IRS and 'report' your company for non-payment of taxes. Then call Social Security and do the same. YOU are not to blame, and the company may have to pay a HUGE FINE ... so your 'problem' will be finding a better job, that has a 'legal' accounting procedure.

Answer 4

If they are not taking out one or two of what may be called social security, FICA, medicare, or OASDI, they are cheating you.

If they are taking out those taxes, they are probably not cheating and the reason that no income tax was taken is probably because you do not make much and have many exemptions. If you want to have more tax taken, file a new W-4 with fewer exemptions.

Even if no income taxes were taken, if your wages are shown on your W-2 and you are otherwise eligible, you can claim an EIC for up to 2 kids and a child tax credit for the 3rd. No one can claim an EIC for 3 kids (or any other number greater than 2), whether or not taxes were taken from their pay.

Answer 5

I assume that they are taking out social security and medicare, just not income taxes.

Being paid every two weeks shouldn't make any difference on whether they take out income tax.

At 8.50 an hour, 40 hours a week, you'd make around $17,680 for a year. On that amount, with 4 exemptions, you wouldn't owe any income tax - that's why nothing is being withheld. And yes, you'll still get EIC.

Answer 6

IRS Taxpayer Assistance Division

1-800-829-1040

Answer 7

They are not cheating you since you are getting that money in your Net pay.

If you want taxes taken out then either lower your dependants from 4 to 3,2,1 or 0, or you can give them a new W-4 and there is a line that says 'Additional Tax to withhold" put $25 on that line and a min of $25 each time will come out.

It will affect you when you file taxes, you will have 0 withheld for the year, if you owe then you owe...

Answer 8

It's because you files for 4 exemptions period - you don't make enough per paycheck to get any fed inc tax taken out - and chances are you won't owe any tax either with 3 kids - unless you're married - then you should change the withholding exemptions to Married and 1 exemption

Answer 9

that's unlawful for them to not take taxes out. they could get in difficulty for that with the IRS. the only way they could try this legally is to record you as an independant contractor and grant you with a 1099 on the tip of the 12 months. Then they're lined in case you do not pay your taxes. they're of their criminal rights to place everybody on a customary payroll equipment and function taxes taken out of their pay. maximum assurance companies won't insure a corporation without a payroll equipment via fact if retains song of who's employed and who isn't. in case you do not fill out a w-4 style then they have the magnificent to place you on the optimal taxed this is single no dependents. it is on your ultimate interest to be on payroll. this way you have unemployment advantages and medicare and social protection being paid via your business and you so in case you ever prefer it this funds it is there for you. And the I-9 has not something to do with taxes it is to confirm while you're legally allowed in this u . s . and dealing.

Answer 10

They won't take taxes out on you - you claimed 4 dependants. If you make less than a 1K a paycheck your taxes will not be taken out. Good for now but when you file your taxes you may have to pay some of it back.