New employee questions

[MJ]

I agree with the others, this sounds very sketchy. Even my first jobs in high school pumping gas at gas stations, where I was paid in cash, everyone also received a withholding statement on the envelope said cash was in.

That's when I first found out about payroll withholding, a major disappointment at the time. When I complained to my parents they just laughed at me and explained some working "facts of life".

My wife worked 3 years ago as a waitress twice for small restaurants and they provided hand written paystubs.

 

[OldShooter]

That's a good idea. She knows another person working over 1 year and I suggested that she asks if he is an employee, did he recently get his W2 and whether he was originally given a W4.

Even if she gets a W-2 that is no guarantee that the employer has actually deposited her withholding with the federal and state agencies. She could wait a year for that W-2 and find out that she has paid nothing towards the taxes she owes. Given the slow workings on the IRS, this could take a year or more to sort out. Same-o if she doesn't get a W-2 except that would be even stronger evidence that the employer wasn't turning in the money.

It is not yours or your wife's job to sleuth out the details of why this job situation is stinky. The smell is enough to motivate a decision.

 

[Aerides]

sure it's no guarantee of good/bad behavior, but it sure might lead to an interesting conversation!

 

[imnontrad]

I believe that this is poor accounting at best and illegal at the worst. In addition if FICA taxes are not sent in, it could affect her SS benefit. I knew of a case recently where the employer (or whoever was supposed to send in the money) neglected for over *** 30 *** years to not send in FICA payments and as a result, until resolved, this employee cannot sign up for Medicare and when he does, he may have a penalty for life for filing late.
Contact the state department of labor and report this. My guess is that per state law, the employer is required to give a pay stub for work performed and taxes, etc deducted.

 

[isisdave]

And don't forget, OP and Mrs OP still can't tell if she's being paid for all her hours worked, or if the employer just made up a number he hoped would be enough to keep her satisfied.

 

[MJ]

I wanted to give an update. Apparently, the employer only took out FICA and Medicare and based on the hours my wife recorded, the check amount was correct. Regarding pay stubs, we unfortunately live in one of the few states that stupidly or on purpose has NO regulation regarding pay stubs so in our state, it is NOT illegal. As far as FICA and Medicare, I just created a social security profile for my wife already can see her and employer contribution for 2021. I don't know how long it takes for that information to show up online during the current year or if it does at all. She worked this year at another company for nearly 2 months and that information is not available yet. I'll give SSA a call and see what they say.

 

[Vacation4us]

What about Federal and State withholding? If the employer is not taking these taxes out you will end up with a bill to pay next year. Not worth it. I would find a new job. There are plenty of jobs available right now.

 

[MJ]

What about Federal and State withholding? If the employer is not taking these taxes out you will end up with a bill to pay next year. Not worth it. I would find a new job. There are plenty of jobs available right now.

I already do quarterly estimates so of course, I will include her salary. If my wife can't get them to issue a paystub, I actually prefer that they don't take out Fed and State taxes so that I can determine that the net check is accurate.

 

[cathy63]

I wanted to give an update. Apparently, the employer only took out FICA and Medicare and based on the hours my wife recorded, the check amount was correct. Regarding pay stubs, we unfortunately live in one of the few states that stupidly or on purpose has NO regulation regarding pay stubs so in our state, it is NOT illegal. As far as FICA and Medicare, I just created a social security profile for my wife already can see her and employer contribution for 2021. I don't know how long it takes for that information to show up online during the current year or if it does at all. She worked this year at another company for nearly 2 months and that information is not available yet. I'll give SSA a call and see what they say.

I don't think you can see FICA payments on the SSA website until after the end of the current year. They only show yearly totals, not y-t-d numbers.

 

[cathy63]

I already do quarterly estimates so of course, I will include her salary. If my wife can't get them to issue a paystub, I actually prefer that they don't take out Fed and State taxes so that I can determine that the net check is accurate.

That makes sense. If you're paying estimates anyway, you're more likely to be accurate than any employer's withholding, since they don't know your full financial picture.

It sounds like they probably are remitting the FICA and Medicare taxes (plus the employer payroll tax) if they're withholding them. The main issue seems to be that they didn't ask her to fill out a W-4 or your state's equivalent and just assumed she'd write in "exempt".

 

[disneysteve]

I wanted to give an update. Apparently, the employer only took out FICA and Medicare and based on the hours my wife recorded, the check amount was correct. Regarding pay stubs, we unfortunately live in one of the few states that stupidly or on purpose has NO regulation regarding pay stubs so in our state, it is NOT illegal.

Glad to hear it's not illegal, stupid as it may be. What advantage is there to the employer to not issue pay stubs? Does their payroll service charge them less?

How are employees supposed to verify that their checks are correct? I check my pay stub every time to make sure my hours were recorded properly.

And a few times a year our accountant has me send him a pay stub so he can check that we're on track with our withholding.

Is there any retirement plan? What about health insurance? Those things are on the pay stubs too. So is PTO many times.

So odd that an employer wouldn't provide that info, even if it saves them a few bucks not to.

 

[OldShooter]

@MJ, is this really such a good job that it is worth accepting the problems and risks that it obviously entails? The situation may be simply due to the incompetence of the employer, but that too can have consequences for your wife, like tax and FICA withholding not being sent in. I am not sure there is any way to confirm these payments in a timely manner. Maybe someone else knows.

IF there is malfeasance, the IRS can punch through the corporation and go after the owner as an individual, but that wouldn't guarantee that your wife would get her withheld money back or that she would get a pass for late/non-payment of the taxes.

 

[disneysteve]

@MJ, is this really such a good job that it is worth accepting the problems and risks that it obviously entails? The situation may be simply due to the incompetence of the employer, but that too can have consequences for your wife

And if they are incompetent in how they handle taxes and payroll, what else are they doing wrong in the business?