Underpayment penalty caused by employer

[cmg1]

My son has had underpayment penalties three years running ($50 to $100). It turns out his employer was withholding far less than what  should be withheld when claiming one single filer exemption on his W4.

My math seems to indicate they took his gross and subtracted the standard deduction and used that as the taxable amount on the withholding schedule. They should be using his Gross as that is how the IRS built the tables.

Other employees have had the same tax issues. Is there a way he can get out of the penalty? Is his employer breaking the law? Can my son make the employer pay it?

[Bsch4477]

That’s a legal not a tax issue.  

[Mike9241]

Is there a way he can get out of the penalty?

on form 2210 you can check box A for total waiver or Box B for partial waiver and included a letter explaining the reason for underpayment. this requires the paper filing of your son's return and there's no assurance the IRS will buy the explanation.

Is his employer breaking the law?

If your employer failed to withhold the correct amount of taxes based on your W-4, resulting in penalties, here are some steps you can take:

1. Contact the IRS: Reach out to the Internal Revenue Service (IRS) to report the issue. You can explain the situation and provide details about the incorrect withholding. The IRS can guide you on the next steps.

Can my son make the employer pay it? see a lawyer 

[VolvoGirl]

After the first year he should have given the employer a new W4 and have some extra taken out to cover the shortage.  Better do it now for 2024  so it doesn't happen again.