• FirefoxInstall the new Firefox »
  •  
    United States

    Question

    my boss has been paying me with payroll checks. I find out he did not pay my taxes. He kept all my tax money.?

    My boss kept all my tax money. He never paid into workmens comp, payroll tax, employee tax. What could and what should I do????
    a few seconds ago 8 Answers

    Best Answer

    Chosen by Asker
    Federal payroll taxes have two parts: the trust fund portion and the non trust fund portion. If your employer is a corporation, the non trust fund portion is discharged because this is the part which your employer matches; 1/2 of your social security and medicare. The IRS uses IRC 6672 to pierce the corporate veil if he is the willful and responsible officer, then the trust fund portion; your withholding, the 1/2 social security and medicare eg the portion that was taken from your wages: all of these wil be assessed under his social security number. If he is a sole prop, he will be responsible 100% Bankruptcy will only extend the statute date of the Federal Tax Lien. Report him to the Employment Development Dept just in case he says that you are an independent contractor. Then report him to the IRS so they can issue a FTD (Federal Tax Deposit) alert/ Atl least he is candid about the payroll taxes. At times like these, don't be surprised if he asks his employees to become shareholders or partner. If the bottom line does not improve, consider looking for another job because he will have catch up problems and if your workers comp is large, it means that your industry has a higher incidence of filing claims. Its incidences like these is why SSA fund is running low. The funds will be there for you. Obama wants you to trust him this because its not your fault
    a few seconds ago

    Other Answers

    • Any taxes that were withheld from your pay are treated for you as if he did pay them. Payroll withholdings and sales taxes are called "trust fund" taxes because as soon as a sale is made (sales tax) or a payroll check is due, the business is holding those taxes in trust for the government. If the business is a corporation and goes out of business, the IRS and the state will go after anybody who signed payroll checks. Any assets owned by your boss are eligible for the IRS and state to levy to force him to pay. You should hold onto all of your pay stubs. If you don't get a W-2, you will have to prepare Form 4852 based on that information and submit it with your tax return next year. If you do get a W-2 that reports the taxes withheld, then you just file that as though everything is okay. True story: A client's business (a corporation) had fallen behind in paying payroll taxes to the IRS. My boss (partner in CPA firm) spoke to her about filing and paying the current tax returns. He was trying to get her to understand how seriously the IRS takes payroll tax matters. CPA: Do you like your house? Client: Yes, Mr. Smith and I intend to retire there. CPA: Do you want to keep it? I hope this helps. Gary

      by garyg7 - 18 hours ago

    • As long as your pay stubs reflect that taxes were withheld from your pay you have NOTHING to worry about. Verify the amounts against your W-2 when you receive it. If he failed to pay the taxes withheld over to the government and/or pay his payroll taxes, that's HIS problem, not yours. As long as you have evidence that the taxes were withheld from your pay you do NOT have a problem and do NOT need to take any action at this time. Just out of curiosity, how is it that you "know" that he didn't pay the taxes?

      by Bash Limpbutt's Oozing Cyst© - 18 hours ago

    • Contact social security and let them know, they'll make sure he gets it right. I had to do this several years back also. And it takes no time at all. Bad company by the way. Find another job, I surely did.

      by Hey Jude - 18 hours ago

    • Contact your state dept. of revenue and the IRS. The unfortunate side of your issue is that you are still responsible for paying all of your taxes even though your employer with held them. You may be able to sue for the tax money with held plus court and legal fees,collecting is another problem. Due to computer technology,the IRS changed the reporting and tax paying requirements for all companies except those that have only a few employees and do not use computers. The last I know of,all employers have to report at the end of each pay period or within 1 or 2 weeks of it. In the past,employers could keep the taxes collected in interest bearing accounts until they had to be paid. Even if your employer files bankruptcy,taxes cannot be discharged.

      by Ralph T - 18 hours ago

    • if he has failed to file and report your earnings, withheld taxes etc, this is embezzlement and he is in trouble if you know for a fact that this is happening you can report him to IRS, but be sure you have your facts in order(not hearsay)

      by tro - 18 hours ago

    • Call your state dept of labor asap. And hang onto your pay stubs!

      by Judy - 18 hours ago

    • SUE HIS *** IF YOU CAN PROVE IT OR TELL HIM TO GIVE YOU A RAISE BLACK MAIL HIS SORRY ***

      by naruto - 18 hours ago

    Recommended Articles

     
     
     
     
    Yahoo Small Business Services