My last employer only reported that I made 125.00 a wk. It was 320.00. I'm trying to get unemployment now and I can only get 58.00 a wk. if I qualify. If someone turned him in to irs who would be liable to pay the back taxes?
2007-10-02 04:21:50 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I read some place that "two wrongs don't make a right". You were happy to cheat the government until it began to cost you something. Let me know when we get to the part where we should feel sorry for your situation!
2007-10-02 04:51:19 · answer #1 · answered by ? 6 · 1⤊ 0⤋
Yes, your employer would be in trouble for underpaying employee taxes.
However, you would also be in trouble for not reporting all your income on your taxes.
So, you would both be royally screwed.
So, you have two options:
Option #1: Keep your mouth shut and hope the IRS doesn't come after both of you.
Option #2: Admit the error to the IRS on a 1040-X and pay your back taxes. If you go to them without being caught, there is a good chance they won't charge you penalties (though they will charge interest). It is then the IRS's responsibility to go after the employer.
I don't know if your employer paid his taxes now (ludicrously late) if it would affect your potential unemployment payout.
-->Adam
2007-10-02 12:16:20 · answer #2 · answered by great_and_mighty_adam_levine 4 · 0⤊ 0⤋
That's more than a little weird. And didn't you notice that something was amiss with your pay stubs or with your W-2? OK, you figured it was real nice for you when your W-2 was much less than it should have been, since it looked like you owed a lot less in taxes. Now it's biting you in the backside when you are trying to collect unemployment.
If he gets caught, whether someone turns him in or not, he will be responsible for the back employer taxes, and you will be responsible for the income taxes you should have paid in the first place.
2007-10-02 11:29:59 · answer #3 · answered by Judy 7 · 2⤊ 1⤋
Whether or not someone turned him into the IRS, you are responsible for paying the income taxes, plus penalties and interest, on the income not reported by your employer.
If the missing income of $195 per week was wages, you would also be required to pay Social Security and Medicare taxes of up to 7.65%.
Your employer would be liable for an equal amount of SS and Medicare taxes, plus face penalties for failing to pay the SS and Medicare, report wages, or withhold income taxes.
2007-10-02 11:50:25 · answer #4 · answered by ninasgramma 7 · 1⤊ 1⤋
Employer would be responsible for all social security & medicare taxes.
You would be responsible for the federal, state and local taxes on the unreported income.
2007-10-02 13:16:00 · answer #5 · answered by Dee 4 · 2⤊ 0⤋
In my state, California, if you claimed your wages were underreported, the discrepancy would generate an immediate payroll tax audit.
2007-10-02 12:42:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
don't you have pay stubs? employers are REQUIRED to give employees paystubs - what about a w-2 from last year - was that correct?
2007-10-02 12:56:47 · answer #7 · answered by Anonymous · 0⤊ 1⤋