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Old 02-20-2017, 11:43 PM
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Employer did not withhold any taxes, now wants me to send them a check

Hi!

My employer didn't understand that he needed to withhold taxes and pay for unemployment insurance.

Now he wants me to send him a check for the amount that he was supposed to withhold. He is saying that if I don't do this, he will send me a 1099 and treat me as a contractor.

I would feel much more comfortable sending the check directly to the government. Am I obligated to send him a check?



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Old 02-21-2017, 04:08 AM
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My employer didn't understand that he needed to withhold taxes and pay for unemployment insurance. =====> You need to let your ER understand this:employers who do not comply with the employment tax laws may be subject to criminal and civil sanctions for willfully failing to pay employment taxes.Both employer and employee hold the responsibility for collecting and remitting withholding taxes to the IRS. For the most part, the employer withholds these taxes on behalf of their employees, but in cases where an employer does not do this, it is the responsibility of the employee to pay these withholding taxes. Employees who do not have taxes withheld nor remit them personally, are still liable for these taxes and may not qualify for Social Security, Medicare, or unemployment benefits.

Now he wants me to send him a check for the amount that he was supposed to withhold. He is saying that if I don't do this, he will send me a 1099 and treat me as a contractor.=====>Bad idea Id ont think it is good idea, ;you should not have been a contract employee. your ER does not issue you a 1099 since you are a regular W2 employee; There are issues with unscrupulous employers trying to avoid paying their portion of their payroll taxes. They do this by issuing a 1099-MISC making the employee responsible for all taxes due. A W-2 employee pays 6.2% for Social Security taxes and 1.45% for Medicare for a total of 7.65%. An employee issued a 1099 has to pay DOUBLE that for a total of 15.3%! Not only that, getting misclassified means no Unemployment Taxes have been filed an paid. If you lose your job from the employer who issues 1099?s, you will have trouble collecting unemployment. It gets worse. Say you get injured on the job. Since no workers? compensation was paid, if you?re injured you are on your own! If you do not agree with this classification you can speak with your employer to request to be treated as an employee and given a W-2. If your employer refuses you can file Form SS-8 with the IRS. This will request the IRS to look at your employment situation and make an official determination as to whether you are an employee or an independent contractor. The IRS will contact your employer to gather facts from them to make this determination. If you decide not to file Form SS-8 then you will be treated as an independent contractor for tax purposes.



I would feel much more comfortable sending the check directly to the government. Am I obligated to send him a check?=>No you do not need to send the check directly to IRS/your state. If you want, you may send the check back to your ER so that he can w/h taxes from it; Employers that do not withhold taxes from employee paychecks impact more than their own records. The employees in question are losing out on Social Security contributions and are still responsible for paying the taxes. your ER MUST withhold taxes from your paychecks; Simply put, 1099s and W-2s are two separate tax forms for two different types of workers. If you?re an independent contractor, you get a 1099 form. If you?re an employee, you receive a W-2.
As a W-2 employee, payroll taxes are automatically deducted from your paycheck and then paid to the government through your employer. If you?re a contractor, you are responsible for calculating your own payroll taxes and then submitting the sum to the government on a quarterly basis. Every employer is responsible for withholding federal taxes from employee paychecks and sending the money to the IRS/ your state.. Upon being hired you are asked to fill out a W-4 form telling the employer how many dependents you are claiming. Using an IRS-provided chart, the employer determines how much money should be withheld from each check for taxes. In addition, Social Security contributions and other government required contributions are calculated. The money is removed, and you receive the balance with a stub detailing what has been withheld you?re your paycheck and why.



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Old 02-21-2017, 11:38 PM
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Originally Posted by Wnhough View Post
My employer didn't understand that he needed to withhold taxes and pay for unemployment insurance. =====> You need to let your ER understand this:employers who do not comply with the employment tax laws may be subject to criminal and civil sanctions for willfully failing to pay employment taxes.Both employer and employee hold the responsibility for collecting and remitting withholding taxes to the IRS. For the most part, the employer withholds these taxes on behalf of their employees, but in cases where an employer does not do this, it is the responsibility of the employee to pay these withholding taxes. Employees who do not have taxes withheld nor remit them personally, are still liable for these taxes and may not qualify for Social Security, Medicare, or unemployment benefits.

Now he wants me to send him a check for the amount that he was supposed to withhold. He is saying that if I don't do this, he will send me a 1099 and treat me as a contractor.=====>Bad idea Id ont think it is good idea, ;you should not have been a contract employee. your ER does not issue you a 1099 since you are a regular W2 employee; There are issues with unscrupulous employers trying to avoid paying their portion of their payroll taxes. They do this by issuing a 1099-MISC making the employee responsible for all taxes due. A W-2 employee pays 6.2% for Social Security taxes and 1.45% for Medicare for a total of 7.65%. An employee issued a 1099 has to pay DOUBLE that for a total of 15.3%! Not only that, getting misclassified means no Unemployment Taxes have been filed an paid. If you lose your job from the employer who issues 1099?s, you will have trouble collecting unemployment. It gets worse. Say you get injured on the job. Since no workers? compensation was paid, if you?re injured you are on your own! If you do not agree with this classification you can speak with your employer to request to be treated as an employee and given a W-2. If your employer refuses you can file Form SS-8 with the IRS. This will request the IRS to look at your employment situation and make an official determination as to whether you are an employee or an independent contractor. The IRS will contact your employer to gather facts from them to make this determination. If you decide not to file Form SS-8 then you will be treated as an independent contractor for tax purposes.



I would feel much more comfortable sending the check directly to the government. Am I obligated to send him a check?=>No you do not need to send the check directly to IRS/your state. If you want, you may send the check back to your ER so that he can w/h taxes from it; Employers that do not withhold taxes from employee paychecks impact more than their own records. The employees in question are losing out on Social Security contributions and are still responsible for paying the taxes. your ER MUST withhold taxes from your paychecks; Simply put, 1099s and W-2s are two separate tax forms for two different types of workers. If you?re an independent contractor, you get a 1099 form. If you?re an employee, you receive a W-2.
As a W-2 employee, payroll taxes are automatically deducted from your paycheck and then paid to the government through your employer. If you?re a contractor, you are responsible for calculating your own payroll taxes and then submitting the sum to the government on a quarterly basis. Every employer is responsible for withholding federal taxes from employee paychecks and sending the money to the IRS/ your state.. Upon being hired you are asked to fill out a W-4 form telling the employer how many dependents you are claiming. Using an IRS-provided chart, the employer determines how much money should be withheld from each check for taxes. In addition, Social Security contributions and other government required contributions are calculated. The money is removed, and you receive the balance with a stub detailing what has been withheld you?re your paycheck and why.
Thank you VERY MUCH for your detailed response.

I don't trust him and I am not comfortable sending him a check. I want to pay the government directly. Is that ok?

I told my employer that this is dangerous for him, but he won't listen and thinks I'm threatening him. I don't want him to get in trouble, but I want to file my taxes correctly and I want to apply for unemployment. I guess I have no choice but to get him in a lot of trouble.



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Old 02-21-2017, 11:53 PM
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Originally Posted by jumbles View Post
Thank you VERY MUCH for your detailed response.

I don't trust him and I am not comfortable sending him a check. I want to pay the government directly. Is that ok?

I told my employer that this is dangerous for him, but he won't listen and thinks I'm threatening him. I don't want him to get in trouble, but I want to file my taxes correctly and I want to apply for unemployment. I guess I have no choice but to get him in a lot of trouble.
as said,a n employer failing to withhold, report and submit employee taxes can be criminally charged. In addition, there are stiff financial penalties for not properly dealing with employee taxes.While the employee will not be penalized for the employer's failure to withhold taxes, a byproduct of having an employer who does not comply with the law is the loss of Social Security contributions
if you want to pay taxes yourself, then, you need to pay penalties and interest

Before you make a decision, i recommend you contact an Enrolled Agent or a CPA doing taxes in your lcoal area for more wise choice.



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Old 02-22-2017, 12:12 AM
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Originally Posted by Wnhough View Post
as said,a n employer failing to withhold, report and submit employee taxes can be criminally charged. In addition, there are stiff financial penalties for not properly dealing with employee taxes.While the employee will not be penalized for the employer's failure to withhold taxes, a byproduct of having an employer who does not comply with the law is the loss of Social Security contributions
if you want to pay taxes yourself, then, you need to pay penalties and interest

Before you make a decision, i recommend you contact an Enrolled Agent or a CPA doing taxes in your lcoal area for more wise choice.
Wow.. I would have to pay penalties and interest for his failure to pay taxes?

This is for tax year 2016, and my income tax isn't due yet. Would this be penalties and interest due to his not paying quarterly?

I can't afford a CPA unfortunately.



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