is my employer libel for improper withholding of NYC taxes from paychecks?
my employer did not withhold NYC tax, only NYS & federal from my pay. Due to my boss reporting it to corporate payroll they just last week issued a new W-2 for 2015 & I've been told I have a huge tax liability for 2016. I want them to pay for their mistake, not me. Can I suffer penalities for 2015 for NYC?
1 answer | asked Aug 22, 2016 2:07 PM [EST] | applies to New York
Answers (1)
Have you asked your employer about that? Have you requested that your employer reimburse you for any penalties?
Someone is liable for taxes and the government can seek payment from either you or the employer. Ask your employer first how they want to handle it and if that does not satisfy you then ask the city why you and not employer should pay penalties or interest if that's what they want.
If this was your first year of working in the city then how would you know what taxes should be withheld although you probably signed a payroll deduction form which every NY employee must sign authorizing lawful deductions. The Wage Theft Prevention Act was signed into law a few years back in order to provide every employee notice of all lawful deductions and to prevent surprises like this. If your employer was complying with that law or was not the DOL may be interested in further investigation and possible penalties, etc... against your employer. If your employer does not make this right with you keep in mind that you can always contact the state DOL.
Remember that employees have a duty to inform employers when they are paid too much or too little so what you knew and when you knew it could be very important. A similar duty applies to employers to pay employees according to federal, state, and local laws.
I think you need to examine your pay vouchers carefully and see why no local taxes were shown and then examine the authorization you signed for withholding and see what you agreed to. With that documentation you might have a mitigating argument with the city but it will likely want some late payment or interest penalties from one of you. Good luck.
posted by V Jonas Urba | Aug 23, 2016 1:39 PM [EST]
Someone is liable for taxes and the government can seek payment from either you or the employer. Ask your employer first how they want to handle it and if that does not satisfy you then ask the city why you and not employer should pay penalties or interest if that's what they want.
If this was your first year of working in the city then how would you know what taxes should be withheld although you probably signed a payroll deduction form which every NY employee must sign authorizing lawful deductions. The Wage Theft Prevention Act was signed into law a few years back in order to provide every employee notice of all lawful deductions and to prevent surprises like this. If your employer was complying with that law or was not the DOL may be interested in further investigation and possible penalties, etc... against your employer. If your employer does not make this right with you keep in mind that you can always contact the state DOL.
Remember that employees have a duty to inform employers when they are paid too much or too little so what you knew and when you knew it could be very important. A similar duty applies to employers to pay employees according to federal, state, and local laws.
I think you need to examine your pay vouchers carefully and see why no local taxes were shown and then examine the authorization you signed for withholding and see what you agreed to. With that documentation you might have a mitigating argument with the city but it will likely want some late payment or interest penalties from one of you. Good luck.
posted by V Jonas Urba | Aug 23, 2016 1:39 PM [EST]
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