Question for Business Owners w/ Employees

**wanderlusting** · 02-02-2007, 12:20 PM

I have a question for those of you who own a business and have an employee. Here's the situation.

My employer didn't take any taxes out of our checks for three months last year. I figured that's ok because I'll just pay my part when I go to do my taxes.

I got my W-2 and it shows I earned less than what I actually made last year. I asked my supervisor (I work in England and my the company's owners live in Louisiana) at work about it and I was told that the company put the income for those three months as company income and it won't reflect on our W-2's.

This sounds fishy to me. Does anyone else do this or heard of this practice?

**jkelstaten** · 02-02-2007, 02:59 PM

I'm not an employer, but that sounds fishy to me. It's illegal to report anything less than what you actually made and as an employer I believe they are required to take out the taxes you request (the form you fill out when the hire you). They are also required to pay a part of the social security tax and it sounds like they are trying to avoid some of those things.

**FrugalMomof3** · 02-02-2007, 03:39 PM

I ditto what jkelstaten said! The only way to do something about it is to contact the IRS but that could result in the company going out of business so it's a call you have to make but think about it first.

**wanderlusting** · 02-03-2007, 05:05 AM

Thanks for re-affirming my supsicions. A few other employees told the tax office on base about it. I was just curious to see if anyone else has had this happen to them.

**nwmissourigal** · 02-04-2007, 11:07 PM

Sounds really fishy to me to. You have to report all income and not taking taxes out the last three months doesn't make any sense. I would be asking to direct question to your employer. Why should you have to pay at the end of the year when they could have been taking out the taxes. Something doesn't smell right here...hope you can get some good solid answers...Blessings..Kathy

**Laurie in Bradenton** · 02-05-2007, 07:00 AM

You may want to check with the payroll department at the firm. You say they are located in Lousiana they "may" have some special type of tax credit due to hurricane Katrina. Best to ask those who are sending you the paperwork and get back up documentation.

LAurie in BRadenton