I (as well as atleast 5 other people) were hired within a 3 month span of time (approximately 8-10 month ago) and told when we were hired that a benefit of the job is that the employer would pay a percentage of our federal tax. While no one has this documented from the employer, atleast 6 people are able to verify it and management has verbally stated that they did say it but did not mean it in that way (now covering it up so they don't have to pay). It was initially presented as a job "perk" (as there are no others with the job). Several employees have quit over this and we are all going to be heavily taxed, as they have only been withholding 6% of tax (not enough to cover taxes in PA). Is there legal recourse?
2007-12-22 03:32:28 · 6 answers · asked by J H 3 in Politics & Government ➔ Law & Ethics
It sounds like the company is only paying the employers portion of FICA and has not been withholding the other FICA, state and federal taxes. Companies do not pay your taxes for you. They must withhold them and send this money quarterly to the IRS and state. They cant give you a 1099 at the end of the year since you are not an independent contractor. You will actually be liable for the taxes that they did not with hold. You need to call the IRS and report them ASAP. They will be fined and you may be able to work out a payment plan with the IRS.
2007-12-22 03:45:02 · answer #1 · answered by Diane M 7 · 1⤊ 0⤋
Employers are required to pay a portion of the tax and insurance by law and to the employer it is considered part of the "benefits" even though you as an employee do not seem to see any "real" benefit. If you were self employed you would have to pay this tax yourself.
So they are telling the truth, you are just seeing it from another viewpoint.
2007-12-22 03:46:30 · answer #2 · answered by ssupertech 2 · 0⤊ 0⤋
Your employers should have been paying into the government what was owed based on salaries. The only way they could get away with this is to report that you are making less than you are. Which will show up on your W-2. Unless this employers has gone so far has to work two sets of books, the ramifications for them is far worse that what it will be for you.
2007-12-22 03:38:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
When a company says they will a pay a percentage of your federal tax, steer clear. The money they are supposedly going to use to pay the tax is money withheld from your paycheck anyway. Why not let you pay full taxes, but allow you a higher rate of pay?
2007-12-22 03:56:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
commencing factor is the business employer is commiting tax fraud - so record it to the police (and doubtless HMRC) they could desire to have an interest cos you're saying it fairly is happening each year. And as its dedicated persistently it ability the administrators of that business employer are appearing fraudulently, additionally because of the fact the business employer+directors exchange each and each year, however the staff dont it ability they're working a conspiracy to defraud.
2016-11-24 19:49:27 · answer #5 · answered by plyler 4 · 0⤊ 0⤋
Did they put that in writing? If not, so sorry.
2007-12-22 03:36:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋