AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question My bonus pay was suppose to be $7,498 dollars but my pay stub read $6,998. When I asked my employer he stated that the missing amount was used to pay the employer's portion of the taxes. That does not make sense ? Is that standard practice ? I would think my gross pay stub should state $7,498 and show the exact deductions. Please let me know if that is a fair practice and if so fine, but If I am getting cheated because of unethical practices I need to know so I can report the accounting firm and employer for the unethical practices.
Answer Amish,
Thanks for your question.
What your employer has done may not be the best way to handle it, but it is not illegal or unethical unless there was a legal obligation to pay you a bonus of $7,498. He is simply being cheap by not shouldering his portion of the payroll taxes.
