Hypothetically, if an employer pays an employee cash each week instead of a paycheck, and says that although they are earning 8 an hour they will only actually receive 6 because taxes are taken out, then refuses to provide W2's at the end of employment so the employee can file, who should the employee contact? This is a retail position, not contract labor. Thanks
2007-09-19 19:30:50 · 4 answers · asked by F*** Mohammed 1 in Business & Finance ➔ Taxes ➔ United States
Yeah sbyldy, actually pretty sure no taxes were paid, and that employer tricked employee into working for low wage - employee would be entitled to full refund had taxes been taken out, so is kind of being screwed over twice.
2007-09-19 19:53:56 · update #1
Definitely illegal. You have no way of knowing if your taxes, etc. are being paid or not. Also, you have no proof that you even work their without the stubs, if you were to get hurt, chances are they are not paying into workmans comp. either. To report this you would call the IRS
2007-09-19 19:46:05 · answer #1 · answered by sbyldy 5 · 0⤊ 0⤋
If this were to happen, the employee should ask for a statement with the pay showing the amount being withheld. If no statement is forthcoming, the employee would be foolish to remain on this job.
If no W-2 is provided, the employee can contact the IRS. The IRS will pursue the employer to provide the W-2 and to pay the payroll taxes.
If there is a wage dispute, the employee can contact the State Labor Board where the employee works.
2007-09-20 07:36:23 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Find a new employer. What employer is doing is illegal, but you are also required to report your income on your tax return. You are liable for employment taxes-- employee portion and employer portion, which is at 15.3%.
Now answer to your question: "Could employer be in trouble with IRS?" Yes both the employee (that is you) and the employer could be in trouble with IRS. Why did not you think about this in the very first week of your employment?
Once again, it is best for you to find a new employer who pays you by check and gives you withholding statement.
2007-09-20 03:21:52 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
Oh, geez, that's a mess. Yes, of course that would be illegal, from a number of angles.
If this hypothetical situation happened to me, I'd call the state deepartment of labor, the federal department of labor, and the IRS, since all of them have some piece of what's being done illegally. You should be able to find phone numbers on their websites.
2007-09-20 10:33:11 · answer #4 · answered by Judy 7 · 0⤊ 0⤋