Accounting, Payroll & Pension Issues/tax withholdings

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Expert: - 2/5/2009


Question
Hi there, I was wondering if my former employer has created an illegal act.  I had specified on my W-2 what amount of taxes I wanted taken out of my paychecks, but the accountant did not follow my wishes, took out less each time and now I have to pay a few thousand dollars into taxes for this in addition to being layed off my the same company.  This also happened with local taxes to myself and at least three other people at the firm.  Is this fraud?  

Thank you!

Nicole

Answer
It would not be fraud unless it was done intentionally.  It would be a mistake on the part of the payroll department. I am sure you meant on your W-4.

If you explain what happened to the IRS, they may make the company pay for penalties and interest, but you will still have to pay the taxes.

They will investigate and they will make the company show copies of the completed W-4 that you filled out. The company will have to explain why they did not do it correctly. They may be penalized for not correctly withholding taxes.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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