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Payroll company pulled incorrect taxes! can i do anything??

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H

hsmunson

Guest
What is the name of your state? nc

for the first time in 10 working years i owe taxes (federal and state). i traced it to the payroll company who for the year 2002 only pulled 2% of my income for my federal taxes and 1% for the state over the year. I can tell this is not right because my other jobs (2 pt jobs over this past year) average at least 6% for federal . this same payroll co. did 4% in 2001. I claim 1 I have always claimed 1. I am a server in a local resturant who works part time so the fluctuations in the checks are normal. The resturant now does the checks in house... so far doing 9% this year.
this past year i earned @ 20,000 and i will owe $400 to the irs, and $300 to nc! it may not sound like much but it hurts alot.

So.
1. is tax law the correct place to look for answers?
2. was this payroll company in the wrong?
3. can I do anything about it?
4. i am currently writing a letter to the payroll co. what is my next step?

thanks to anyone who read this. and to anyone who can help
 


S

SAPCPA

Guest
You can't really do anything about this, you need to think about the income tax withheld from your checks all year as money into your "kitty" or tax account, and at the end of the year when you figure out your tax for the year, if there isn't enough in your "kitty" then you owe taxes. I think the reason the latest job didn't hold out enough money has to due with the tips you received. Restaurants aren't required to hold income tax, only social security on tips reported, but many restaurants do, so perhaps the prior resaturants held income tax on wages and tips.
 
H

hsmunson

Guest
I think i understand you....but I have worked for 3 different resturants over 4 years and this is the FIRST time this has happened.

Resturants have you declare all your tips at the end of the shift and your paycheck is based on that .
 

abezon

Senior Member
1. Yes, the withholding charts are in the tax code.
2. Yes, they should have withheld the amount required by the charts.
3. No. You aren't damaged -- you've had an interest-free loan of $700 for the last year. Now you have to pay it back. You were actually helped by the payroll company's error, in the form of larger paychecks during the year.
4. You have no real recourse, other than telling other potential customers that the company screwed up the withholding in your favor.
 

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