What should i do if my new boss is paying me with a personal check ?

Employment 2 views 1 answers
new owners bought the company i worked for they have not put me on the payroll, they are giving me a personal check in the take home amount, not taking any tax out, i plan on retiring this year how will this effect my retirement

Attorney Answer

1
Christopher Edward EzoldHealth Care LawyerBala Cynwyd, PA ·
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, Delaware, New Jersey or Federal law apply, unless otherwise specified. That being said, if taxes are not taken out, then you will not have paid into Social Security, so you may find your benefits slightly reduced (as it will be less than a year of such taxes after your working career). You will have to pay income taxes, but such would not have been withheld, so you will have a tax burden. You can file a Form SS-8 if you are incorrectly being treated as a contractor. The issue is whether they are paying you your full wages and failing to withhold, or reducing your pay to the take-home amount and treating you as a contractor. You need to put this in writing now - that you won't work for less and that you expect taxes are being withheld and paid. The IRS does not play nice when it comes to employers failing to withhold income taxes, or failing to pay those amounts to the IRS, so your employer could be in for a rough time. Speak to your accountant about how to handle the tax issue. Good luck. /Christopher E. Ezold/
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