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Discussion Starter #1
I am so ticked off. Partially at myself for not being more aware, and a lot at the church I work for. I just found out this morning that they have not been taking out Federal tax. 0. Nothing. I reviewed the form I turned in and found that I had completed it properly but they didn't know how to use the tax table to calculate the tax so they assumed that I didn't want anything withheld. I was claiming married 0 and they thought 0 meant withhold nothing. :eek: So, our taxes this year should be really fun.:mad: Like I said, I'm partially responsible since I didn't check my stubs, and assumed they were taking out the necessary taxes. WTF, I am sooooo upset. With this being a really tough year, we were hoping for a little refund. Well, I guess not this year. Anywho, that's my vent. :mad:
 

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Is that legal?! :eek:

Man, that blows for you.
 

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Wow that's chunk of change out of each check, I'm surprised you didn't notice. Sorry its just beyond me that you wouldn't notice for a whole year. I guess because I'm anal about keeping tabs on my check stub- I want to know how much is in my vacation/illness bank, that they are taking the correct amount out for savings/retirement. Just recently while I was on light duty, because of my ankle. I noticed they were paying me at 48hrs not 50, yes I was working 50. I didn't care so much about the money, but for every hour I work I earn leave time. I called them that day. I don't know how many checks they put out a week, bi-weekly or monthly, but once the paper work is done, nobody usually takes another look at. Sorry it does suck, but I have to say, mostly this one is on you-IMO
 

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I'm sorry for you, but I learned a long time ago to look at pay stubs. A girl I worked with never had state income tax taken out. She didn't notice either until she filed her tax returns. She was very upset at the money she owed. You do know you will have to pay the tax right? I hope it's not too high of an amount.
 

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Discussion Starter #9
Yeah I know I'll have to pay the tax. Luckily we are very thrifty so we should be able to handle it. I guess when I started work there, I should have looked at my 1st check of the new year since I had only received one prior check and it was fine. There really is no excuse, I worked in payroll and that was one thing we always stressed. I guess after being away from it for 7 years, I just blanked out on it. However the church has been told and will start taking out a flat rate until we get to the bottom of this and figure out what should be taken.
 

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Word of advice-If I remember correctly, depending on how much tax you owe you may want to look into the amount before the 15th of January so you can make an estimated payment by that date to cover the amount. Otherwise when you file you will pay a penalty if the amount is over $900 or $1,000. Don't remember the exact wording of the law right at the moment and or the amount you are allowed to owe without incurring a penalty. Time is of the essence to protect yourself from making a bad situtation even worse.

I believe Federal Law will also require you to make quarterly payments this year due to the oversight. It would be worth your while to go to the IRS office in Fort Wayne and talk to someone asap to avoid any penalties and or find a telephone number and call the IRS.
 

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Word of advice-If I remember correctly, depending on how much tax you owe you may want to look into the amount before the 15th of January so you can make an estimated payment by that date to cover the amount. Otherwise when you file you will pay a penalty if the amount is over $900 or $1,000. Don't remember the exact wording of the law right at the moment and or the amount you are allowed to owe without incurring a penalty. Time is of the essence to protect yourself from making a bad situtation even worse.

I believe Federal Law will also require you to make quarterly payments this year due to the oversight. It would be worth your while to go to the IRS office in Fort Wayne and talk to someone asap to avoid any penalties and or find a telephone number and call the IRS.
Wow that's harsh. We have until we file without penalty to keep the whole amount. We file on April 30th. (Canada)
 

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Word of advice-If I remember correctly, depending on how much tax you owe you may want to look into the amount before the 15th of January so you can make an estimated payment by that date to cover the amount. Otherwise when you file you will pay a penalty if the amount is over $900 or $1,000. Don't remember the exact wording of the law right at the moment and or the amount you are allowed to owe without incurring a penalty. Time is of the essence to protect yourself from making a bad situtation even worse.

I believe Federal Law will also require you to make quarterly payments this year due to the oversight. It would be worth your while to go to the IRS office in Fort Wayne and talk to someone asap to avoid any penalties and or find a telephone number and call the IRS.
Seriously? I thought that was only the case if you didn't pay in full what you owed, or make payment arrangements by April 15th. It just doesnt make since to me, you wouldnt technically be behind in your taxes- so why the harsh consequences.:confused:
 

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I just had to have my payroll department start taking out more for Federal tax. I claim Married but Withhold at Higher Single Rate, and 0, and they were only taking 10% of my gross. I am sure that is not enough. :(
 

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You may have to pay estimated taxes quarterly for 2010, but if you get your witholding straightened out, you should be able to avoid that.

Regarding penalties for this year, get a copy of the W-4 you filled out. It will be proof that the intentional avoidance of withholding was not yours. You should be able to avoid any penalties for this year. Assumes you have the money to pay your tax due on or before April 15th.
 

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Seriously? I thought that was only the case if you didn't pay in full what you owed, or make payment arrangements by April 15th. It just doesnt make since to me, you wouldnt technically be behind in your taxes- so why the harsh consequences.:confused:
There are penalties if you owe a certain percentage of your total tax after the end of the tax year, because technically you're supposed to be paying those taxes throughout the tax year. April 15 just gives you time to get all your stuff together and your final calculations completed.

http://www.irs.gov/taxtopics/tc306.html
 

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Our accountant is handling it for me and I am getting a copy of the W4 form to avoid tax penalty. He's handled our taxes for 12 years and he says it will be fine. In fact, based on what we filed last year, our refund will just be smaller.
 

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Our accountant is handling it for me and I am getting a copy of the W4 form to avoid tax penalty. He's handled our taxes for 12 years and he says it will be fine. In fact, based on what we filed last year, our refund will just be smaller.
Whats a refund:confused:
 

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You know - I have been thinking about this and if there is any penalty you are hit with, your employer should cover it. You filled out a legal government document in good faith and they failed to properly execute it. They clearly have someone doing payroll who is freaking clueless.

I did payroll eons ago and did it all by hand with charts to figure out the withholding. It is not rocket science. There is simply no excuse for them screwing this up.
 
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