My Employer is Not Paying the Taxes He is Withholding

by Jolene
(Boise ID)

My employer is holding out 15% on my checks (last check was $576, and he withheld $86.40). I am single claiming 1 dependent. He says he is sending them to the payroll company monthly, but I have not received a breakdown since May. I don't know if I should insist on a 1099, go exempt or turn him in- any suggestions?

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Insist on a Pay Stub
by: Best Business Payroll

According to what you have said, it is unclear whether your employer has paid the taxes he has withheld from your paycheck or not. What he is saying may indeed be true, or there may be something fishy going on. But what is important is that you be provided an accurate pay stub: if you have an accurate pay stub you should be fine either way.

Every employer MUST give you a pay stub to indicate gross pay, taxes, and any other deductions which may have been taken out when you are paid. According to the law, you must be given this notification EACH AND EVERY TIME you are paid. By doing this, you will be able to see specifically how much is being taken out for taxes, etc. each pay period.

This notification, however, might not be a paper hard copy; increasingly, many companies are moving toward paperless systems where your pay stub is available online only. In this case, you should be provided website address and a password with which to access your pay data.

If you haven't had this conversation with your employer, have the discussion now. If he still does not provide a pay stub, you should contact your local Department of Labor and file a complaint.

Once payroll taxes have been withheld, the employer, NOT THE EMPLOYEE, is responsible for paying those taxes to the appropriate government agencies, and if that does not happen, the employer is liable for any penalties.

In the worst case scenario (that is, if your taxes are being taken out but truly not being paid and your employer is keeping them) the employer, not you, is liable for the taxes and he would face some serious consequences.

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