Topic: taking legal actions against former employer (knowledge of us tax system req'd)

[маразм1]

Here's the problem.
I was promised i would be on W2.  It turns out I wasn't.  The amount I was getting paid already excluded the taxes that would be allegedly collected by w2.  So now I quit and it turns out that I wasn't on W2 for 4 months this year without even knowing it.  I signed a contract that contained my net income (that is after all the taxes were taken out).  I do not have the contract in my possession, the employer does.

let me clarify: w2 means a certain company witholds taxes from an employee.  without it, an individual is self-employed and must file his taxes.  The latter one usually means the individual gets the whole amount, since no taxes are ever collected.  W2 also provides disability options, and pays an employee unemployment, should the employee lose (her) job.

you can visit the website of my now former company www.advanceware.net

please, anybody, lawyers, help me!

This is, as far as I know, a criminal offense.

[Gurn Blanston]

It is indeed a criminal offense. If you are all square with the IRS a good choice would be to contact them and tell them your situation. You also lost payments into your Social Security which (if it should still exist when you retire) would all be money out of your pocket yet again. No telling if they have done this to others also, it may be a scam on their part to save money and evade taxes. You would not only be helping yourself, you would be helping others.

If you are NOT all square with the IRS, an attorney or at least a good accountant is your best bet.

Or, you could just admit you're screwed, which you are right now...

[маразм1]

It is indeed a criminal offense. If you are all square with the IRS a good choice would be to contact them and tell them your situation. You also lost payments into your Social Security which (if it should still exist when you retire) would all be money out of your pocket yet again. No telling if they have done this to others also, it may be a scam on their part to save money and evade taxes. You would not only be helping yourself, you would be helping others.

If you are NOT all square with the IRS, an attorney or at least a good accountant is your best bet.

Or, you could just admit you're screwed, which you are right now...

thanks, a bunch.  I got a form already from irs.  Tomorrow I'm contacting New York's tax office. 
An important lesson here is never trust anybody, always get everything in writing.  But in my case, I was acting too suspicious, and everybody was accusing me of it.  Now they know.  I am not the only one who got screwed. 

What a frikkin nightmare.
d

[Gurn Blanston]

thanks, a bunch.  I got a form already from irs.  Tomorrow I'm contacting New York's tax office. 
An important lesson here is never trust anybody, always get everything in writing.  But in my case, I was acting too suspicious, and everybody was accusing me of it.  Now they know.  I am not the only one who got screwed. 

What a frikkin nightmare.
d

Yes, when it comes to money, "never trust anyone" are words to live by...

[маразм1]

AFter pestering the ass, I was able to get my original contract signed by me. 

In there, it clearly states my raw amount, and that taxes would be paid regularly.

I can now hire a lawyer.  He dug a grave for himself.

d.

[zamyrabyrd]

Persistence is most important. Some people give up if pursuing the issue seems like too much trouble and that is what employers like that assume or at least hope for.  Sneaky pieces of work are usually overconfident so they are bound to slip up somewhere. Doing research is work but necessary. Also being cool.
From the Magic Flute:
"Sei standhaft, duldhaft" (My book only has an Italian translation: constanze, fede)
I estimate I am only halfway through my own Odyssey started about a year ago.
The part I most resent is that time and energy could have been spent CONSTRUCTIVELY instead.
Oh well.
ZB

[Larry Rinkel]

The IRS poses certain tests to determine whether one is an employee or an independent contractor. If you're an employee, the employer is required to withhold payroll taxes and FICA from your paychecks. The employer must also pay payroll taxes to the federal and state, and there are severe penalties for not doing so. If you're an independent contractor, you generally receive your gross amount and pay your own taxes; in most cases you have to pay estimated taxes quarterly so that you're not hit once a year with a huge payable you can't afford. So if you were truly hired as an employee, it sounds like you were scammed.

I'm not following everything from your first post, D., but as you may remember from when we last talked, I work for a firm specializing in accounting and payroll software. We have several accountants on staff who have an intimate knowledge of payroll law. So if you want to provide me more information either here on the board or by PM, I can try to advise you further.

[Szykneij]

Marazm1 --

Did you get paid with a traditional paycheck? Every paycheck you got should have had a stub attached indicating all of your withholdings. If you were paid any other way, I wouldn't be surprised if something fishy was happening.

[маразм1]

Marazm1 --

Did you get paid with a traditional paycheck? Every paycheck you got should have had a stub attached indicating all of your withholdings. If you were paid any other way, I wouldn't be surprised if something fishy was happening.

I was getting pay stubs for May--onward.  They were w2 paystubs.  For January--April I was just getting direct deposits. 
I was promised that W2 paperwork would be filled out for the entire year.

I'm attaching my contract here.  Please could you look at it?  Basically I kept getting paid $1508 every two weeks, and just found out I have to pay taxes for January--April. 

Also, Larry, thanks for offering me your help. 

[Szykneij]

On Page 2, section 6, they clearly indicated they would make the proper withholdings from your pay. I would try to calculate the specific amounts they failed to withhold (which should be 8x the withholding from a single check since you were being paid every other week) so you know exactly what the totals are. Unfortunately, hiring a lawyer will be expensive for you while they likely have lawyers on their payroll looking for things to do.

[head-case]

On Page 2, section 6, they clearly indicated they would make the proper withholdings from your pay. I would try to calculate the specific amounts they failed to withhold (which should be 8x the withholding from a single check since you were being paid every other week) so you know exactly what the totals are. Unfortunately, hiring a lawyer will be expensive for you while they likely have lawyers on their payroll looking for things to do.

You've missed the point.  If I understand the original post, the gripe is not that they failed to withhold, but that they paid him as though they withheld (money he received less than promised gross pay) but the IRS has no record that taxes were withheld, so they expect him to pay additional tax.