Federal Taxes

[patches1]

What is the name of your state? TX

There is someone who is an independant contractor, but her employee takes out taxes every pay period. He told her that they goverment charges him 10% to have her as a w2 employee. She only gets paid twice a month. This time, they took out 495.76 in taxes. the taxes include: federal withholding, social security with holding, medicare withholding, social security liability, medicare liability, FUTA liability, and SUI liability. She grossed $953.56. That is half of what she earned taken out in taxes. Is this legal? She also receives a bonus, but that was included in the gross amount, but hasn't seen the bonus yet. Could this also be taken out in taxes as well? By the looks of this, that is exactly what they did.

[LdiJ]

Originally Posted by patches1

What is the name of your state? TX

There is someone who is an independant contractor, but her employee takes out taxes every pay period. He told her that they goverment charges him 10% to have her as a w2 employee. She only gets paid twice a month. This time, they took out 495.76 in taxes. the taxes include: federal withholding, social security with holding, medicare withholding, social security liability, medicare liability, FUTA liability, and SUI liability. She grossed $953.56. That is half of what she earned taken out in taxes. Is this legal? She also receives a bonus, but that was included in the gross amount, but hasn't seen the bonus yet. Could this also be taken out in taxes as well? By the looks of this, that is exactly what they did.

She needs to make a complaint call to the IRS. Apparently he is deducting employer taxes out of her pay as well as employee taxes...and yes...that is absolutely illegal. Plus, its illegal to withhold on income not yet paid out.

Yes, the government does charge him about 10% to have her as a W2 employee...however, he isn't allowed to pass that cost on to her.