Legal Question in Employment Law in Alabama

Taxes

Is is illegal for a small business, less than 15 employees not to take out any taxes?


Asked on 4/16/07, 1:33 pm

1 Answer from Attorneys

Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Taxes

Are they claiming deductions out of your paycheck? If so and they are not in fact sending the money in to the IRS and State Department of Revenue, then they are in violation of the law - but it is an IRS issue more than a personal one. If they are doing this, you need to protect your tax liability by notifying the IRS.

But if they are just calling you "independent contractors" in order to get out of paying social security income tax, then you have a tougher road to overcome. If you are truly an independent contractor you are required to pay your own social security. If you are not then the IRS should help you, but since it is such a small company, it is not likely to be worth a lawsuit against them when they fire you for going to the IRS.

In other words, your best bet is to go to the IRS with your complaint, but be prepared to find another job. If they are not competent to do employees properly, then quitting is ultimately a severe punishment for them.

I know that's not a very good answer, but often it is the only realistic one - especially when dealing with such small employers.

Good luck!

Sterling L. DeRamus

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Answered on 4/16/07, 3:50 pm


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