Tax Withholding, or lack thereof.
February 9, 2010 11:24 AM Subscribe
Tax Withholding - Question regarding rights, responsibilities, and dealing with incorrect IRS Tax Withholding at a job.
posted by SirStan to Work & Money (9 answers total) 1 user marked this as a favorite
A friend of mine started a salaried position in the United States at an employer that pays bi-monthly (24 pay periods) for 86.66 hours a period. When she started the job, she decided to enter $10 into box 6 on her W4. Box 6 states, "Additional amount, if any, you want withheld from each paycheck".
Fast forward to January 2010. The company switches payroll vendors, and her paycheck is $80/m lower. Upon review of her paystubs, I find that the employer was only deducting $10 *total* for federal tax withholding. All other values (FICA, etc) are accurate.
So I had to explain the $80/pay check bad news, followed by the fact she owes ~$3k in taxes for 2009 because her employer didnt withhold them, and she didn't know it was an issue.
What recourse does she have? Will the IRS have any mercy? Is the employer at fault?