• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Employer failed to follow W4 forms

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

K

KYSassy

Guest
What is the name of your state? Kentucky

My employer is a wholesale company. It is a LLC. The owner/president is a C.P.A. He does his own payroll and this year he messed up! Our W2's were a total mess. Some of the employees didn't even have state wages listed, some had no witheld taxes in some boxes, and numerous women had taxes witheld at a rate of almost 50% less than in previous years.

It came to our attention that he upgraded his software after the new tax codes came out. He failed to enter certain individual changes and that caused the system to default all of the married women to the married rate deduction. Our W4 forms show us to be designating deduction at married but witholding at the higher single rate. This was brought to his attention earlier in the year by some employees. His answer was that due to the new tax codes the witholding rates were lower. We figured that a C.P.A. must know what he was talking about. He did not change the software designations and now some of us are finding that we
are going to have to pay in on both federal and state taxes.

Aren't employers required by law to deduct payroll taxes at rates designated on an employee's W4 form? Since he' a C.P. A.,
isn't there a code of ethics he is governed by? His attitude is that the amounts he witheld is legal. To the I.R.S. that may be true.
However, what is the point of the government requiring W4 forms
if the employer is not going to follow the designations on the form?

Is there any action that can be taken against my employer?
 
Last edited:


abezon

Senior Member
The point of W-4 forms is that the employer has to withhold at the highest rate unless you file a W-4 that tells him not to. Quit complaining. You got the gov't to give you an interest free loan for over a year & you have 3 months to save up any taxes owing.
 
K

KYSassy

Guest
I am surprised at the tone of your answer. Perhaps you don't live paycheck to paycheck like the average american worker does...and if that be true be thankful.

I have a hard time believing that an employer who intentionally disregards the designations on W4 forms should not be held accountable. However, if that be the case, then be assured I will pay my due.

As for my year long loan you mentioned....what loan? It would only be a loan if I were receiving some kind of benefit for it. I am pure middle class... you know, one of those who really foot the bill for the rich to keep getting richer and the poor to be able to live at all.:D
 

abezon

Senior Member
It's a loan because you owe the gov't $xxx & they aren't going to make you pay any interest on that debt until 4/16/03. The benefit you received was having the money during the year, so that you could save some & collect interest on it until you have to send it to the gov't on 4/15/03.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top