Delimma on our tax return. Need advice please

68stang351 · Feb 19, 2007

I had someone do our taxes today, and found out something disturbing.
My wife has 2 jobs, one full time, and a part time. Her part time job is at a small business owned by two people. I found out today when I had my taxes done that her W2 form from the part time job showed NO taxes at all witheld. She didn't file this way, and they did withhold the year before. She didn't fill out another W4 from the year before. She should have had taxes withheld.
When she gets paid, they don't give her a stub either.
I'm thinking that they took taxes out of her check, but didn't report it.
Her co-worker is in the same situation, and we are getting back less than half the return we got last year. We are getting screwed because of them.
I haven't talked to the owners yet but I will tonight.

Isn't that illegal? Should I try to turn them in?
They either changed her withholding info without her consent or did withheld taxes and did not report it. Like I said, she didn't fill out another W4 to change any withholding, and it was not like that the year before.

Any advice would be greatly appreciated, I'm just very angry because we REALLY NEEDED a decent return, and now there's no way I can get what we should be getting, but I can make sure to get him in enough trouble that he won't do that again to anyone else.

Thanks

1320stang · Feb 19, 2007

Was she getting paid the same amount she was getting paid the year before?

As I recall, you have to sign your W4 to show you changed your status.

Does she want to continue working the part time job?

ForceFed70 · Feb 19, 2007

My tax knowledge is from Canada, so while it's very similar things could be different.

Having said that, the question comes to mind "How much did she earn from the part time job?"

In the US you will have a certain threshold of how much $$ you can earn in a year without getting taxed at all. If your wife earned less than that limit from the 2nd job only, then the employer is NOT required to withold any earnings. In Canada, for people working more than 1 job it's the employe's responsibility to ensure he/she notify the employer every year that he/she is working more than 1 job and to withold additional earnings.

Also, it is of no benifit to the employer to not withold earnings. The employer has to pay the same wages, regardless of who they are paying it to (employee or government). That is of course, that the employer is paying the full wage and not "pretending to pay some of the money to the taxman".

Taranis · Feb 19, 2007

I thought that Texas didn't have income taxes?

ultrastang · Feb 19, 2007

Taranis said:
I thought that Texas didn't have income taxes?

As I understand it , Texas doesn't have STATE taxes, but they still pay FEDERAL taxes.

Hey Taranis, I live in Camden, AR. Where exactly is Redneck, AR?

geostang351 · Feb 20, 2007

Most employers have to pay a payroll tax which I believe matches what the employee has withheld. So yes, the employer is breaking the law as evading paying this tax.

But, it is the employees responsiblity to pay their taxes whether the employer has withheld them or not.

As far as not paying taxes to a certain amount is correct, if I remember correctly, the employer would still withhold money and the entire amount would be refunded by the Gov't at the end of the year using the 1040 EZ form. It's not like the employer wouldn't withhold money until you hit like $5000, then start to withhold. It doesn't work that way.

95CobraStang · Feb 21, 2007

So how did they pay her?? Just a check?? Sounds like an under the table "misc expense" for the owners... not cool if so.

I say definitely talk to them first to see what is up. When you do, don't tell them you are thinking of turning them in. Then, once you get the info, you can decide.

Keep me posted... I'm graduating this semester in accounting and am half way through my tax class right now. very relevant to me

68stang351 said:
I had someone do our taxes today, and found out something disturbing.
My wife has 2 jobs, one full time, and a part time. Her part time job is at a small business owned by two people. I found out today when I had my taxes done that her W2 form from the part time job showed NO taxes at all witheld. She didn't file this way, and they did withhold the year before. She didn't fill out another W4 from the year before. She should have had taxes withheld.
When she gets paid, they don't give her a stub either.
I'm thinking that they took taxes out of her check, but didn't report it.
Her co-worker is in the same situation, and we are getting back less than half the return we got last year. We are getting screwed because of them.
I haven't talked to the owners yet but I will tonight.

Isn't that illegal? Should I try to turn them in?
They either changed her withholding info without her consent or did withheld taxes and did not report it. Like I said, she didn't fill out another W4 to change any withholding, and it was not like that the year before.

Any advice would be greatly appreciated, I'm just very angry because we REALLY NEEDED a decent return, and now there's no way I can get what we should be getting, but I can make sure to get him in enough trouble that he won't do that again to anyone else.

Thanks

Taranis · Feb 21, 2007

ultrastang said:
As I understand it , Texas doesn't have STATE taxes, but they still pay FEDERAL taxes.

Doh! That's right. I moved from Texas to Arkansas and am STILL miffed about paying state income taxes.

65fastback2+2 · Feb 21, 2007

Taranis said:
Doh! That's right. I moved from Texas to Arkansas and am STILL miffed about paying state income taxes.

yup....i HATE ky state taxes....makes me miss texas too...

1966conv · Feb 21, 2007

Take her wage per hour times the hours worked any particular week and come up with a figure (X) Take X amd multiply it by .0765 (Social Security taxes) (Y)

X-Y better equal what she is bringing home, or taxes are being with held and may or may not be paid.

If she is making less than 7K/yr (appx) the tax tables may not be taking any income taxes out. She should submit a new W4 to withhold taxes on the parttime job anyway.

69 Rustang · Feb 21, 2007

The employer is responsible for paying their portion of taxes on any W-2 employee, if she got a W-2, the employer should have paid their portion. The EMPLOYEE portion however is another story as they do not have an obligation to withhold other than what the W-4 request was. Not sure how to comment on the W-4 "re-submission" as generally you don't have to fill one out every year. A previous reply said fill one out now and I think that is a very good idea--you are 2 months into '07 already.

Contract Employees: If no taxes were withheld or paid by the employer (employer portion), she should have received a 1099, not a W-2. Verify--did she get a 1099? I believe there are conditions for when a 1099 employee is appropriate, and it is possible that part-timers could qualify in certain situations--I don't have time to research that right now though. I am no expert...so what I know off the top of my head here.

RedGTvert · Feb 21, 2007

69 Rustang said:
Contract Employees: If no taxes were withheld or paid by the employer (employer portion), she should have received a 1099, not a W-2. Verify--did she get a 1099? I believe there are conditions for when a 1099 employee is appropriate, and it is possible that part-timers could qualify in certain situations--I don't have time to research that right now though. I am no expert...so what I know off the top of my head here.

If you are getting 1099'd you cannot be an employee, you would be considered an independent contractor, and cannot use the home office, factory or facility as your home base of operations.

Delimma on our tax return. Need advice please

68stang351

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That's why they call it "dope"

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