Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 month ago

Employer deducted less tax?

I work for TD and my income for 2019 on my T4 is $34,000 (not commission, regular employment income). Tax deducted for 2019 is $2,200. According to my account, i did not pay enough tax compared to my income. Now, I never set up any tax preference with my employer and it was all done automatically when i started. My account is saying I may have to pay tax out of my pocket. What generally happens in these cases? and what options would I have if i can not pay the taxes since my employer made a mistake. Thank you

Update:

according to my accountant** , my accountant is saying***

9 Answers

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  • 1 month ago

    In the US, all employees are REQUIRED to fill out a W-4 form when they are hired that says how many deductions you need to claim and basically what your federal tax deduction is going to be based on them.  And all employers are REQUIRED to file these forms with the IRS.   Whether you remember doing it is another story--you obviously don't. Employers don't 'automatically' do these--you have to sign them. 

    Yes--you owe federal taxes. And NO your employer didn't make a mistake. He took out federal tax based on what YOU claimed. Perfectly honest and legal. If you can't pay, you need to make arrangements with the IRS for a payment plan. And you need to review that W-4 with your employer to claim FEWER deductions so you won't have a big tax bill when you file your return. 

    That's how these things are handled. You don't get to pick and choose what taxes you can or cannot "afford" you have to budget correctly and plan ahead. And you can ALWAYS put more money away every month or week or quarter in a tax account, savings account or even in a box under your bed--just to pay for whatever didn't get deducted. 

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  • 1 month ago

    He did NOT make any mistake.  You either pay it throughout the year with a larger deduction or you pay more at tax time.  If you cannot pay it all when you send in your tax return, then you call and set up a payment plan.  And you pay a whopping amount in interest & penalties for not paying when it was due.  If you wanted the larger deduction throughout the year, then it was your responsibility to tell him.  You could have changed it at anytime throughout the year.

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  • 1 month ago

    You would still owe the taxes. Guaranteed you owe, that is not near enough to cover even the income taxes. Sounds like they only deducted the FICA taxes and no income taxes. W2 should reflect that.

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  • 1 month ago

    Well they can't make a mistake as it is your responsibility to make sure they have the correct info and honestly I can't believe they did not require confirmation from you. You owe, you need to pay.

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  • 1 month ago

    You write a check for the balance you owe.

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  • Anonymous
    1 month ago

    "What generally happens in these cases?

    You pay the tax you owe.  There may be penalties and interest.

     "I never set up any tax preference with my employer"

    That's your fault.

    "since my employer made a mistake" 

    Don't you read your pay stubs?   Employers have no access to an employee's entire tax situation.   It's the employee's responsibility to make sure enough is being withheld and to instruct the employer to adjust withholding if too much or not enough is being taken out.  You didn't bother, so here you are.

    Your employer is not your mummy or personal assistant.  Stop trying to blame this on someone else.  Taxpayers have responsibilities.  That means you.

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  • 1 month ago

    The employee (you) is responsible for making sure that his or her withholding is correct even if there was an error made by the employer.

    You have two options:

    Option 1)  Get out the checkbook; or,

    Option 2)  There is no Option 2.  Please refer to Option 1.

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  • 1 month ago

    If you owe taxes you have to pay. If you never filled out a form for your employer there is nothing you can do.. you should have asked. There is no way your employer is going to pay tax for you. You can make payment plans with the IRS.

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  • Damien
    Lv 5
    1 month ago

    well if someone makes 29000 per year, atleast 4000 is taken out as tax, so yes at 34000 and paying 2200 in taxes, you did indeed not pay enough tax. Its not a mistake , its how you filled out your form when u were hired for the job, there are a couple of pages relating to taxes, you must have filled it differently, but makes no difference, u either pay them taxes now or they get taken off from your paycheck.

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