income taxes Posted February 1, 2008 Report Share Posted February 1, 2008 Client had direct deposit and never checked his pay stub. Employeer never took out ss and mdcr for the year. Employeer now says he will take it out of Employees withholding for 2007. Employeer won't issue W-2c. What is the proper procedure for the employeer and employee???/ Thank you in advance. SB in Wis Quote Link to comment Share on other sites More sharing options...
MN2V Posted February 1, 2008 Report Share Posted February 1, 2008 Employer can re-issue a w-2 if he has not sent the W-3 (not due until end of Feb). If he has sent the W-3 he must send employee a corrected W-2c....Can't file anything until it is straightened out. Quote Link to comment Share on other sites More sharing options...
income taxes Posted February 1, 2008 Author Report Share Posted February 1, 2008 Employer can re-issue a w-2 if he has not sent the W-3 (not due until end of Feb). If he has sent the W-3 he must send employee a corrected W-2c....Can't file anything until it is straightened out. I s it legal for employer to take ss and mdcr out of employees federal withholdinghe had for 2007?? Quote Link to comment Share on other sites More sharing options...
MJG CPA Posted February 1, 2008 Report Share Posted February 1, 2008 I s it legal for employer to take ss and mdcr out of employees federal withholdinghe had for 2007?? It seems to me the employer is only correcting what should have happened in the first place. There should have been 7.65% tax withheld for ss & medicare and the employee's net pay would have been less. The only choice now is to take it out of the fed wtg or have the employee pay back the overpayment. So taking it out of wtg is probably the lesser of 2 evils, although it may leave the employee in a bad spot if there is now not enough wtg and they have to pay in at the end of the year. Quote Link to comment Share on other sites More sharing options...
Bart Posted February 1, 2008 Report Share Posted February 1, 2008 It seems to me the employer is only correcting what should have happened in the first place. There should have been 7.65% tax withheld for ss & medicare and the employee's net pay would have been less. The only choice now is to take it out of the fed wtg or have the employee pay back the overpayment. So taking it out of wtg is probably the lesser of 2 evils, although it may leave the employee in a bad spot if there is now not enough wtg and they have to pay in at the end of the year. I thought that when the employer forgot to withhold the social security and medicare he, the employer, became responsible for both parts of both taxes. Quote Link to comment Share on other sites More sharing options...
income taxes Posted February 1, 2008 Author Report Share Posted February 1, 2008 I thought that when the employer forgot to withhold the social security and medicare he, the employer, became responsible for both parts of both taxes. Hello KU--Please let me know where I can find any info on this statement. thank you and how the h--- did K St. beat you? Quote Link to comment Share on other sites More sharing options...
Bart Posted February 2, 2008 Report Share Posted February 2, 2008 Hello KU--Please let me know where I can find any info on this statement. thank you and how the h--- did K St. beat you? When the IRS determines that an independent contractor was misclassified and changes their classificaion to employee, they charge the employer with ALL the taxes. Could not find a case or cite. K State played a H--- of a game. Are you a badgers fan? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 2, 2008 Report Share Posted February 2, 2008 It would help is you gave us some idea of the amounts involved. If the amount is not that large, he'd be wise to just accept that W-2, since after all, he should have had it deducted. So he has not been cheated, he just got a larger check than he should have gotten. While the code does say that the employer is responsible to pay in the taxes, whether he withheld them or not, it also requires him to 'gross-up' the wages to include the amounts paid in for the employee that were not withheld. So he would be owing tax on more. And it's not worth losing a job over, in most cases. Quote Link to comment Share on other sites More sharing options...
income taxes Posted February 2, 2008 Author Report Share Posted February 2, 2008 When the IRS determines that an independent contractor was misclassified and changes their classificaion to employee, they charge the employer with ALL the taxes. Could not find a case or cite. K State played a H--- of a game. Are you a badgers fan? He is a W-2 employee and always has been. The owners wife is the bookeeper and she screwed up. They don't want to issue a W-2C which makes no sense to me. They want to take the money out of his Federal withholding and he will now have to pay in for 2007. Any thoughts??? Big Badger fan. Let's meet in the NCAA finals for the title Joan in Wi Quote Link to comment Share on other sites More sharing options...
Maribeth Posted February 2, 2008 Report Share Posted February 2, 2008 Joan, some of this doesn't make sense. How has she been reporting his earnings on her 941's. She should have already paid in his social security and medicare tax on the returns and also his federal withholding tax. What should happen is the employer needs to gross up his salary for the FICA already paid in. How can she reduce his FWT if she has already paid his FICA??? Maribeth Quote Link to comment Share on other sites More sharing options...
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