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Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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My employer doesnt withhold state and federal tax from my

Customer Question

My employer doesn't withhold state and federal tax from my paychecks even if I asked him to and I end up with huge bills in tax year. I'm in process of obtaining loan for mortgage and found out that my employer reported smaller amount of salary to IRS. Basically, my W2, Paycheck, and employer's payroll register do not match and my lender cannot approve for the loan. What can I do?
Submitted: 4 years ago.
Category: California Employment Law
Expert:  Joseph replied 4 years ago.
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

Your employer is required to withhold state and federal taxes from your paycheck under California and federal law, and failure to do so can be considered a serious offense by the IRS, California Franchise Tax Board, and the EDD.

Your employer also reporting smaller amounts of your salary to the IRS is a serious violation as well.

You may consider reporting your employer's fraudulent tax activities to the IRS directly, which you can do using the forms available online here:

http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
Expert:  Joseph replied 4 years ago.
Hello Sarah,

Please remember to rate my answer positively so I get credit for my work!

Or, please ask me any follow up questions that you have.

Thanks and best of luck!

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