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My boss hasn’t taken state taxes out of my wages going on 2 yes, what should I do?

He’s making me liable to pay state taxes which I’ve never had to do instead of taking them out thru the year
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3 Replies
DanielV01
Expert Alumni

My boss hasn’t taken state taxes out of my wages going on 2 yes, what should I do?

If you are liable to pay state taxes, and your company is not withholding, then your best option is to make quarterly estimated payments to your state.  While it is likely that your boss or company has a legal obligation to withhold the appropriate state tax, it is not always required, particularly if your work is not located in your home state (in which case, they may not have an obligation to withhold).  But whether or not they actually withhold is somewhat irrelevant, because you still have to pay the tax regardless.  

 

Think of withholding as a convenience:  the company takes the tax out of your paycheck on your behalf and pay it to the state for you.  This makes it easy and convenient to reconcile and pay the tax, and often times enough tax has been paid in so that you receive a refund.  But when this convenience is not performed, you still must pay.  And if you haven't paid in enough tax ahead of time, you can be responsible for penalties and interest as well as the tax.

 

For more information, please see this link:  Can TurboTax calculate the estimated payments for next year's state taxes?

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My boss hasn’t taken state taxes out of my wages going on 2 yes, what should I do?

Your employer may be violating a state law by not withholding state income tax from your pay.  You could contact your state labor relations board or office, or your state tax department, and find out.

 

Also, you may be required or requested to give your employer a state tax withholding form that is different from the federal W-4 form, it may also depend on state law.

 

As stated, if you do not have withholding, you should make estimated payments at least quarterly.  Your state should have a web site where you can make payments by bank debit.  

My boss hasn’t taken state taxes out of my wages going on 2 yes, what should I do?

since you don't want to get your boss p.o.-ed and fire you, just make estimated tax payments and that will take care of it.

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