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Is it legal for an incorporated employer to not withhold federal taxes for a w2 employee?
Wiki User
∙ 14y ago
It is not legal - IT IS AN ABSOLUTE REQUIREMENT with severe penalties and pursued very vigorously for ANY employer (incorporated or not) to fail to withhold, payover timely, contribute the matching FICA, etc. And - Withholding and payroll taxes (along with sales taxes) are considered trust funds and ALL officers and involved parties, even of a corporation, are PERSONALLY liable (joint and severally), so there is no protection. These cannot be discharged in bankruptcy either. Criminal charges are not uncommon. Getting the idea that these are not things to play around with?
Wiki User
∙ 14y ago
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Which of these statements is trueMore allowances deducted from a paycheck ensure that a person will receive a large refund at the end of the year?
The fewer allowances an employee declares, the more money the federal government will withhold from a paycheck.
What is the form w-4?
The W-4 is used by your employer to withhold the correct federal tax from your income. You must fill it out and return it to your employer.
What is the form w 4?
The W-4 is used by your employer to withhold the correct federal tax from your income. You must fill it out and return it to your employer.
Is employer pay federal tax for employee?
Wow...question makes no sense really. Pay is taxable, both by Feds and State, and most other places. Employer must withhold an estimate of the tax on that pay, and send it to the Government, into an account of YOURS. He doesn't pay the tax for you, it is coming from your pay.
Where does the employer get the information used to determine the amount of federal income tax to withhold from employees earnings?
From the IRS. They have instructions and pay charts telling employers what to withhold depending on how much the employee makes, how often they're paid, and what the employee entered on their Form W-4. There are also charts for certain types of work, such as agriculture. If you use this information to figure out if your employer is withholding the correct amount, don't forget to take into consideration any pretax benefits you have, such as a flexible spending account, which are subtracted before calculating tax. States also provide similar instructions or pay charts for employers to determine how much state tax to withhold. (See related link below for the IRS Pub 15 for employer instructions for withholding federal tax.)
What is US FICA?
FICA is the acronym for the Federal Insurance Contributions Act. It mandates that employers withhold a set percentage of an employee's salary each pay period. FICA also requires the employer match the employee's amount and contribute the money to Social Security. This fund provides retirement income , and disability insurance
What is FICA used for?
FICA is the acronym for the Federal Insurance Contributions Act. It mandates that employers withhold a set percentage of an employee's salary each pay period. FICA also requires the employer match the employee's amount and contribute the money to Social Security. This fund provides retirement income , and disability insurance
Federal Payroll Tax?
Federal payroll tax is a system in which the employer of a taxpayer withholds funds from the employee's wages for the purpose of paying various tax obligations. The employer may owe a portion of the tax liability themselves, based on the employee's wages. This is true with Social Security retirement, for instance, where both the employee and employer are responsible for a share of the tax. Assume an employee makes $1,000.week. At the end of the year, the employee will have made $52,000. Based on this income, the employee would most likely have a federal tax obligation. Rather than waiting until the end of the year for the employee to pay their tax obligation, and risking that they may no longer have the funds, the IRS created employee withholding or federal payroll tax. The estimated tax obligation of the employee is estimated by the IRS, based on the wages earned and the number of dependents the employee is entitled to claim. These estimates are set forth in tables created by the IRS and provided to employers. If a person earns $1,000 a week, the employer may be required to withhold $200 as an estimated tax payment to the IRS. The federal taxes normally withheld by the employer include federal income tax, Social Security retirement and disability tax and Medicare tax. Deductions for things such as a 401k or pension account are normally optional deductions and are not considered taxes. In the case of Social Security retirement and disability, the employer may only withhold one half of the tax obligation (12.4 % plus 1.45 percent for Medicare in 2012). The employer must pay the other half of the obligation from the employer's own funds. With very few exceptions, employers are required to make these deductions for federal payroll tax. If the employer fails or refuses to do so, the employer may be personally liable for the tax obligation. In addition, once the funds are deducted, the funds no longer belong to the employer. They must create a separate trust account for the benefit of the IRS. On a quarterly basis, the employer must file a return with the IRS showing the employees, the wages earned and the payroll taxes withheld. The employer must then pay the amounts withheld to the IRS. If the employer fails to do so, and the employer is a corporation, officers or other responsible individuals may be held personally liable for the amount owed.
Does an incorporated condo association need a federal employer identification number?
When an association pays employees and files tax returns or sends W-2s or 1099s, a federal employer identification number is required.
What is the purpose of form W-4?
The purpose of Form W-4, titled Employee's Withholding Allowance Certificate, is to help your employer withhold from your pay the correct federal income tax, based on Single or Married filing status and based on any dependents/allowance exemptions. If the correct amount is withheld, then you should either receive a refund or owe a reasonable, not a huge, amount when you file your tax return.
What percentage of federal taxes are withheld from gross income?
Your employer payroll department would have to give you the correct percentage that they will be withholding for all of your federal taxes that they will be required to withhold from your gross income.
Can a federal employer use an employee's name and circumstances in a safety talk?
That depends entirely on the circumstances.
