My employer found a mistake in several employees wages and taxes. Basically they didn't take out enough payroll taxes. Several of us have a loan against our retirements, and the had the loan payment set up on a Payroll deduct. the payroll person was taking out the payment then taxing our income. this resulted in not enough taxes taken out. Can they force us to pay this amount to them? I would like the option to settle this with the IRS myself when I file my taxes (as I have the maximum amount of taxes with held already as well as an additional amount) I always get a return that is 5-7 times the amount they say I owe, and I always qualify for EIC. thing is, I am a single parent, with an extremely tight budget, the amount they want to "payroll deduct" for the next 6 months is seriously 1/2 my grocery budget, and that isn't much to begin with. Can they force me to pay them instead of handling it myself or should I be allowed to have the option to handle it myself when I file taxes.