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9 Answers

my employer doesn’t take out taxes?

Asked by: tmoran 948 views YA Discussion

I need major help here guys…

I’m a college student and took on a summer job. It’s 15/hour and I work roughly 30 hours a week. I’m working in a clinic environment as a supervisor. Well, my company doesn’t do paper checks, it’s all direct deposit. So there is no paper they hand out on pay day like my previous jobs showing what you made/taxes taken out/etc. I calculated what I should make (untaxed) and it is exactly what was deposited into my account.

What am I suppose to do? I filled out a W-something form during orientation… where I claimed “single” i’m just confused why nothing is being taken out and how much I should be saving for taxes? Any help would be great!
i heard about this “independent contractor” thing but i don’t think that’s me at all. i don’t set me own hours or choose what to do on my own.
i just got my first check.

and i just found out for the summer program i’m in they don’t take out taxes so i’ll be responsble to pay at tax season… great =/

i’ll ask about the pay stub tomorrow… but i still need to contact IRS i guess to figure out how much to save/put away for tax season

9 Answers

  1. denny on Jun 28, 2012 Reply

    Even though your employer deposits your check directly into your bank account, he/she should still provide a “stub” (sometimes called “Direct Deposit Advice”). This stub should show your gross pay, taxes withheld, net pay, and other deductions. If you’re not getting this, ask for it. The form you filled out when you were first hired is called a W-4, which allows you to claim your filing status.

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  2. Rob on Jun 28, 2012 Reply

    employer is required by state and federal laws to
    provide a pay check statement.
    contact payroll to find out where yours is.

    if they say no to paperwork, contact state labor
    agency for info.
    contact IRS.gov for info on how to calculate
    with holding taxes and how to file them,

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  3. the kid on Jun 28, 2012 Reply

    W4? Why not ask payroll to make sure things are being done right.

    They absolutley must by law supply a pay stub upon request.

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  4. Quick Answers on Jun 28, 2012 Reply

    So, you didn’t look at the paperwork, you didn’t think about your paycheck until now?

    Go to IRS.GOV and print out form SS-8. Take a long look at it. If you file the form, they will get a similar questionaire and then the IRS decides if you are an employee or a contractor.

    If the IRS agrees with you, you file a 1040, put the income on the wage line, pay the employee share of fica/mc and all taxes. If the IRS disagrees with you, you file a 1040 with schedule C and pay the ful 13.3% SE tax.

    It’s highly unlikely, but if you are taking classes and the job is on campus, did you put exempt on the W-4? College students working on campus do not pay fica/mc.

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  5. mudbug on Jun 28, 2012 Reply

    1. Consult IRS Publication 15 (irs.gov) to determine what amount should be held out.
    2. Submit Form W-4 (from irs.gov) to your employer with this amount on line 4 of the form.
    3. By law, your withholding should be adjusted within 30 days.

    If they are not withholding because of how you completed your first W-4 and try to treat you as an “independent contractor” just smile. Set aside 30% pay for self-employment taxes for now. Later submit IRS Form SS-8 (this MUST include company’s EIN) but only AFTER you are no longer working there AND have a written reference from them for your resume. (3 yr window).

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  6. rtfm on Jun 28, 2012 Reply

    Even if they pay you by direct deposit, they are required by law to give you a pay stub showing all deductions. Most companies make these available on line rather than handing them out on paper. Ask your supervisor how to see yours.

    If they’re really not taking out any deductions, ask them why.

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  7. A Hunch on Jun 28, 2012 Reply

    Contact the payroll department, it could be a glitch in the system….
    If you don’t get the answer you are expecting, you can then escalate the issue.

    I don’t know why some people’s first response is file a claim with the IRS.

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  8. Judy on Jun 28, 2012 Reply

    Have you asked your employer?

    You should still get a paystub even if you have direct deposit, or be given a website to look it up.

    An employee fills out a W-4 http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=103 , has tax taken out, and gets a W-2 at the end of the year. An independent contractor fills out a W-9 http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=103 , has nothing taken out, pays his or her own tax, and gets a 1099-misc at the end of the year. The W-4 has a place to check single, the W-9 doesn’t.

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  9. tro on Jun 28, 2012 Reply

    it’s pretty obvious without any taxes being withheld you are considered an independent contractor in their mind
    they should have had you file a W-9 with them at least
    and as far as a pay stub is concerned, even if your wages are deposited directly they are r’qrd to provide a pay stub, you are entitled to know what taxes are being withheld
    as for your anticipated taxes for the year you file quarterly on 1040ES, the last two are Sept 15, and Jan 17 of next year
    you will file your income on Sch C and SE where you calculate that tax, which is approx. 13.3% of your sch C ‘net'(that is income less business expenses)
    if you want a determination about your status you can get an SS8 from http://www.irs.gov, complete it and file with IRS for them to determine your status

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