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Tax Withholding Pay Structure
Summary
Employers arent legally required to withhold taxes if individual paychecks dont meet the threshold. Its crucial for employers to clearly explain pay structures. Consider IRS payment plans or penalty relief for back taxes. Consulting a tax professional is advisable for personalized guidance.Full Conversation
My employer is a franchise of * stores. I am the call center for all *. To set up my position, the employer decided to have each of the stores pay me */* of the hours I work. I receive * paychecks. This year, when I filed taxes, I realized that I had no federal withholdings because none of the * paychecks, each time, met the threshold to begin the withholding. I now owe a big tax bill. Is there any legal remedy for this?
Hi ****! It sounds like a tricky situation. Here are some options you might consider:
- Claim Adjustments: Discuss with your employer about adjusting how your pay is processed to ensure federal tax withholding.
- Estimated Tax Payments: Consider making estimated tax payments throughout the year to avoid a large tax bill.
- Consult a Tax Professional: They can offer personalized advice and potentially identify deductions or credits you might be eligible for.
Have you spoken to your employer about addressing this issue moving forward?
- Claim Adjustments: Discuss with your employer about adjusting how your pay is processed to ensure federal tax withholding.
- Estimated Tax Payments: Consider making estimated tax payments throughout the year to avoid a large tax bill.
- Consult a Tax Professional: They can offer personalized advice and potentially identify deductions or credits you might be eligible for.
Have you spoken to your employer about addressing this issue moving forward?
I have done these things with my employer for moving forward. The problem is this tax bill right now.
Hi ****! Dealing with a sudden tax bill can be stressful. Here are a few steps you might consider:
- Payment Plan: The IRS offers payment plans for taxpayers who can't pay their full tax bill at once. You might want to explore this option.
- Request Penalty Relief: If you were penalized for underpayment, you can ask the IRS for penalty relief due to reasonable cause.
- Tax Credits/Deductions: Review your filing to ensure all eligible credits or deductions have been claimed.
Have you considered any of these options or spoken to a tax professional for more detailed guidance?
- Payment Plan: The IRS offers payment plans for taxpayers who can't pay their full tax bill at once. You might want to explore this option.
- Request Penalty Relief: If you were penalized for underpayment, you can ask the IRS for penalty relief due to reasonable cause.
- Tax Credits/Deductions: Review your filing to ensure all eligible credits or deductions have been claimed.
Have you considered any of these options or spoken to a tax professional for more detailed guidance?
Has my employer done anything legally wrong in this matter
Case Rating: *
Hi ****! Your employer's payment method isn't illegal, but it can lead to tax complications like yours. Employers aren't required to withhold taxes if paychecks don't meet thresholds. Since you've already taken steps for future pay, consulting a tax professional for back taxes is advisable.
Hi ****! Your employer's payment method isn't illegal, but it can lead to tax complications like yours. Employers aren't required to withhold taxes if paychecks don't meet thresholds. Since you've already taken steps for future pay, consulting a tax professional for back taxes is advisable.
what might a tax attorney advise me about the back taxes
Case Rating: *
A tax attorney might advise you on the following:
- IRS Negotiations: Assist in negotiating payment plans or settlements with the IRS.
- Penalty Abatement: Explore options for reducing or removing penalties for underpayment.
- Amending Returns: Evaluate if amending past returns could lower your tax liability.
- Legal Representation: Provide representation in disputes with the IRS.
If you have other questions or require further guidance, feel free to ask!
A tax attorney might advise you on the following:
- IRS Negotiations: Assist in negotiating payment plans or settlements with the IRS.
- Penalty Abatement: Explore options for reducing or removing penalties for underpayment.
- Amending Returns: Evaluate if amending past returns could lower your tax liability.
- Legal Representation: Provide representation in disputes with the IRS.
If you have other questions or require further guidance, feel free to ask!
did my employer do anything wrong in not telling me that this might happen or in setting up my pay in this manner? They didn't tell me this was how i would be paid, but I did find it out and didn't say anything
Case Rating: *
Hi ****! Your employer's method of payment isn't illegal. However, it's important for employers to provide clear explanations of pay structures. Since you were unaware initially, it might have been better communicated. If you have further questions, consulting with a tax professional could be helpful.
Hi ****! Your employer's method of payment isn't illegal. However, it's important for employers to provide clear explanations of pay structures. Since you were unaware initially, it might have been better communicated. If you have further questions, consulting with a tax professional could be helpful.
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