New Employee Reporting Requirement IRS

[cleanitup]

California --

I am behind on my taxes and looking to get caught up at the end of the year. Right now I am listed as uncollectible by the I.R.S. Evidently, since I didn't earn any money last year they classified me this way by themselves.

My question is this: I am looking to start a new job and I want to know how soon after I am employed will the government be aware that I am working? Is the IRS, like the State, made aware of my employment status immediately, when the company deposits money into a witholding acount or when they file business taxes quarterly?

Can't negotiate a deal until the end of the year. Since we are in the final quarter will I make it through December, or will they likely be informed immediately and issue a wage garnishment within weeks?

Not sure how it all works. Thanks so much...What is the name of your state (only U.S. law)?

[tranquility]

Unless you do something odd with your W-4, the state (CA) will know very quickly and the feds won't know until next year.

[cleanitup]

Is that because we are in the final quarter, or are the feds only made aware of all employees at the end of the year? In other words, if this were January, would I as an employee have a full year and not a few months? I thought that was just with independent contractors.

When a company takes out withholding, etc and submits them or files their business taxes that's not linked to me as an individual until tax time?

Sorry for the basic questions. Very grateful. Stressful time.

[LdiJ]

Originally Posted by cleanitup

Is that because we are in the final quarter, or are the feds only made aware of all employees at the end of the year? In other words, if this were January, would I as an employee have a full year and not a few months? I thought that was just with independent contractors.

When a company takes out withholding, etc and submits them or files their business taxes that's not linked to me as an individual until tax time?

Sorry for the basic questions. Very grateful. Stressful time.

If you start before January 1, then you will have a W2 for 2009, and the IRS will know about your job by the end of February at the latest.

If you start after January 1, then the IRS will not know about your job until W2s come out for 2010.

[irsos]

Originally Posted by LdiJ

If you start before January 1, then you will have a W2 for 2009, and the IRS will know about your job by the end of February at the latest.

If you start after January 1, then the IRS will not know about your job until W2s come out for 2010.

Actually W-2 information is transmitted to SSA at the end of February. SSA does not send that information to IRS until June or later. It would take some time after that before they would address the W-2 systemically in the context of collections.

[cleanitup]

Thank you all...

Just to clarify for the business tax/reporting novice. When a company hires a new employee and begins witholding taxes that money is submitted to some intermediary holding account or if it's sent to the government bi-weekly, monthly, or quarterly, the IRS doesn't link those withheld funds to individual tax holders tax profile until w2's are filed at the end of the year or longer?

[TinkerBelleLuvr]

You report to the state the quarterly earnings by employee. The federal taxes are on the employer as a whole. The W2's is what tells the feds how much you earned in the prior year.

New hire reporting is basically to help child support orders to get assigned more quickly.