Attention Tax Pros...I-9/W-4 Question!?

Question

Upon hiring me, my employer did not have me fill out an I-9 or a W-4. Come tax time I did receive a W-2, and had no complications with filing my taxes. I did however ask my employer to increase my withholdings and I was told that couldn't be done because tax matters were handled by an accountant. It is my understanding that an individual can have as much or as little taxes withheld from their pay as long as they square things up come tax season. I was also under the impression that employers are required to file I-9s and W-4s for each employee. Are there any situations in which this is not the case? It is a small company with less than 15 employees. Could my suspicions regarding the possible employment of illegal immigrants have something to do with this? Thanks Tax Pros!!

I don't want to ride the tall horse, or seem as if I'm martyring myself, but there is a part of me that feels like something should be done. I am on my way out of this company, a Chinese Buffet, and was less concerned about the withholdings than the legality of it all. This, in addition to the questionable adherence to local Health Department regulations, just gives me that yucky feeling when I go into work each day. How do I balance my sense of right and wrong with the task of correcting inconsistencies at the possible cost of shutting down a mom and pop restaurant that serves to feed and house their two children....Someone want to report it all for me? Hard decision to make, eh?

Answer 1

It makes no difference if the company has 1 employee or 1,000 -- your employer should have had you fill out both an I-9 and a W-4 upon hiring you, to keep in your personnel file. Without the W-4, how did your employer know how much tax to withhold from your pay? And without the I-9, if the Immigration Department decided to audit the company, your employer would be in BIG trouble.

You should be able to file a revised W-4 at any time to increase or decrease your withholdings as you choose. Your employer's answer that it "couldn't be done" because tax matters are "handled by an accountant" is complete nonsense -- any **reputable** accountant handling payroll would insist on having W-4s and I-9s on file for every employee.

Sounds to me like your suspicions regarding possible employment of illegal immigrants is right on target.

Answer 2

The employer is required to have you fill out the I-9 and the W-4, regardless of the size of the employer. However, they are usually required only to keep these forms on file, not to file them.

You have several options:
1. Download a W-4 from the IRS website and give it to the employer (or the accountant, which would probably be better), whether they want it or not.
2. Set aside the additional money yourself and send it to the IRS using form 1040-ES (also available on their website, www.irs.gov).
3. Complain to the government and see what happens.
4. Do nothing.

Answer 3

Your original question has been answered satisfactorily, I think so let me speak to your additional questions.

In my experience, "yucky" feeling is my gut talking to me. My head can go back and forth every 30 seconds all day long, but my gut is always right. What is you experience?

So you are worried about Mama & Papa-san putting food on the table for 2 of their own, when they are putting food on the table for hundreds or thousands while you feel their sanitation is questionable! See what I mean about the head faking us out.

Really, the only issue is this: they are breaking the law and doing potential harm to the public. The withholding issue is secondary. Unless you have a hidden agenda this might be an appropriate time to blow the whistle. Look at your motives.

Answer 4

Something strange is going on, you're right. Since you are an employee, they are required to have to fill out a W-4 - they don't file it with the IRS, just keep it in their own files, but yes they're required to have you fill one out, and to withhold your tax based on it.

Since they obviously did pay in the withholdings that they made, and gave you a W-2, I'd just leave it alone, especially since you say you're leaving soon. It's possible that they're hiring illegals, but that wouldn't really explain why they didn't have YOU (presumably a legal employee) fill out the form.