Try the IRS wage and income transcript to see if the withholding was given to the IRS.
https://www.irs.gov/individuals/get-transcript
If either the employer of payroll company kept the withheld tax then they probably broke several laws. You can also talk to the IRS.
Your state labor department might also be able to help.
I am not an attorney, but I do not think it is legal for a payroll company to hold employees W-2's hostage because they were not paid by the employer. You might want to talk with the local district attorney about possible criminal charges.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
