Discussion:Is this wrong?
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| Revision as of 22:38, 21 February 2008 Sandysea (Talk | contribs) (Then perhaps the) ← Previous diff |
Current revision Murrsg07 (Talk | contribs) (Maggie, no offen) |
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| {{ForumReplyPost|UserID=Sandysea|Date=21 February 2008|Text=Then perhaps the accountant is reconciling the gross/net wages that you are seeing on p/r check. You can't go with the figures on a paycheck stub...too many nuances. If the accountant is saying no big deal...to what exactly? That you report the W-2 as it is and the employee just doesn't know how to reconcile to his payroll checks?}} | {{ForumReplyPost|UserID=Sandysea|Date=21 February 2008|Text=Then perhaps the accountant is reconciling the gross/net wages that you are seeing on p/r check. You can't go with the figures on a paycheck stub...too many nuances. If the accountant is saying no big deal...to what exactly? That you report the W-2 as it is and the employee just doesn't know how to reconcile to his payroll checks?}} | ||
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| + | {{ForumReplyPost|UserID=Murrsg07|Date=2008-02-22|Text=Maggie, no offense, but as a tax law student and future graduate you should polish your writing skills. }} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> Is this wrong?
Discussion Forum Index --> Tax Questions --> Is this wrong?
| 19 February 2008 | |
| I am a new tax law student, maybe this question is stupid for professional.
A friend left his company last Oct,and now he found the company didnot pay tax on his last month's salary although he got after-tax salary. Now he is going to file his tax return,and also he asked the accountant in the company but didnot get any response. Is it wrong if the company didnot pay tax on the last month' salary? how to deal with the situation?thanks | |
| 19 February 2008 | |
| How does he know the company didn't pay the tax? Does his W-2 show withholding? It's the company's problem with the IRS if it didn't pay the tax. | |
| 19 February 2008 | |
| If the company didnot pay tax on last month's salary, how can he ask tax return on last month's salary since he got after tax salary. thanks | |
Oldeastsidr (talk|edits) said: | 19 February 2008 |
| The way I see your question is that the company withheld the tax from your friend's salary but the company did not pay those taxes to the IRS. AS LSC said, if your friend received his salary after the taxes were withheld, and the W-2 shows that taxes were withheld, he then files his tax return as if the company did in fact pay the withheld taxes to the IRS. If the company withheld the taxes and simply used that money for other purposes (business expenses, trip to Aruba, etc), then it is the company's problem -- the IRS will pursue the company and try to collect those withheld taxes (plus penalties and interest). Your friend simply files his tax return and claims a credit for the taxes that were withheld from his salary. | |
| February 19, 2008 | |
| I would give the former the employer the opportunity to correct the situation before you open a whole can of worms. Send employer a letter explaining the situation and your plans to contact IRS for guidance if they do not respond by a certain date. | |
| 20 February 2008 | |
| do you mean to say that the former employer paid your friend his net check amount in "regular" check, rather than through the payroll process whereby the employee would receive a paystub itemizing withholdings? If this is the case the former employer made a mistake and I would give them the opportunity to file an W-2c. | |
| 20 February 2008 | |
| a) How do we know the employer did not pay over the taxes? b) How can IRS deny employee what it says on W-2, if it matches what pay and taxes are supposed to be? | |
| February 20, 2008 | |
| I think what the OP is saying is that the W-2 is wrong. i.e. employee did not get credit for the federal taxes withheld from final check. Maggie you need to clarify this. Are you saying W-2 does not include gross wages or federal withholding on final check? Perhaps they use ADP and employer cut the final check by hand and didn't relay the info to ADP. I see this type of thing happen sometimes with Christmas bonuses. Makes for a real mess. | |
| 21 February 2008 | |
| Thanks. The Gross wages on W-2 is less than actual wages on paystab, they didnot include the last two months salary. | |
| 21 February 2008 | |
| So, the gross wages on the W-2 do not equal the gross wages on the last paycheck stub of the year? Is there anything on the W-2 such as 401K or cafeteria plan, etc. that would make the numbers not agree? Many times the paycheck stub shows line items and you have to figure out where they hit the w-2 if at all....if not, then have client ask employer to amend his w-2. | |
| 21 February 2008 | |
| no 401k or cafeteria plan? Did the employer under-reported the wages? | |
| 21 February 2008 | |
| I asked them give amend W2,but the company didnot agree, they said they can give 1099 or pay check for the tax..how to deal with this? | |
| 21 February 2008 | |
| Maggie; Try to get someone more experienced to help you with this. 1099 is not for employees, if they owe the employee p/r taxes and did not withhold, then simply writing a check for the taxes they withheld is not appropriate.....why not agreeing to issue w2C? | |
| 21 February 2008 | |
| I thought they intentioally hided some waged from tax...I mentioned this to the comapny,but the accountant said "no big deal"... | |
| 21 February 2008 | |
| Then perhaps the accountant is reconciling the gross/net wages that you are seeing on p/r check. You can't go with the figures on a paycheck stub...too many nuances. If the accountant is saying no big deal...to what exactly? That you report the W-2 as it is and the employee just doesn't know how to reconcile to his payroll checks? | |
| 2008-02-22 | |
| Maggie, no offense, but as a tax law student and future graduate you should polish your writing skills. | |
