Questions

In need of advice on possible illegal employment practices.

My employer paid cash, never made me fill out a W-4, I haven't received a W-2 and today I received an invoice from the employer for Taxes not withheld. Is this legal?

3answers

Wow, I am disgusted to here that an employer would do this. This is not legal of your employer and pretty downright unprofessional.

Do NOT pay the invoice.

He sounds like a scam. What I suggest is that you demand a 1099 from him. The 1099 is a tax form that an employer sends you when you do not pay quarterly or per-pay taxes. A 1099 is the legal way to go when you have not paid taxes during the year. I am not an accountant, but I am answering this because I witnessed a friend going through a similar situation. Also, I, too, had a job where I was paid checks with no taxes withheld. The 1099 is what MY accountant suggested and when I filed it, I paid the taxes estimated from the gross amount on the 1099 form.

What your employer is doing is
1. saving money paying by not paying quarterly employment taxes on your labor.
2. trying to make more money off of you by invoicing you for the taxes that you should be paying the government. I am sure he has no intention of paying, but probably just pocketing.
3. Saving money by not hiring an accountant of his own.
4. Getting YOU into serious trouble with the IRS.

All 4 of these are illegal. Demand the 1099 and if he refuses, threaten legal action. Also, hire yourself an accountant.

I hope this helps,
Bruce


Answered 8 years ago

Yes. Even though your employer is responsible for social security taxes and his/her share of your taxes, you are still 100% responsible for your own taxes. I'm not a lawyer and this is not meant to be legal advice or taken as such, but I have been down this road before. Good luck.

Some of my other answers to other questions may help you.

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Best of luck,
Take massive action and never give up.
Michael
Michael Irvin, MBA, RN
www.michaelvonirvin.com
PS – Many people have “Upvoted” my answers. Thanks to those who do this. I really appreciate it.


Answered 8 years ago

You should definitely seek legal counsel. What your employer is doing is not legal under both federal and state law.

The first issue is whether the working arrangement you had is an employee relationship or a subcontractor arrangement. It's not uncommon for businesses to pay cash to subcontractors, but it's incredibly rare to see that in an employee context.

If your employer was treating you as an employee, they should have collected a Form W-4 and Form W-9, and they are responsible for withholding federal income taxes and payroll taxes on your taxable earnings, as well as issuing you a Form W-2 at year end.


Answered 4 years ago

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