My employer found a mistake in several employees wages and taxes. Basically they didn't take out enough payroll taxes. Several of us have a loan against our retirements, and the had the loan payment set up on a Payroll deduct. the payroll person was taking out the payment then taxing our income. this resulted in not enough taxes taken out. Can they force us to pay this amount to them? =======>Seems like maybe some sort of payroll glitchI am not quite sure what you really mean; you mean hr/ payroll people taxed your retirement loan payments?? Taking a loan through a work retirement plan means you're borrowing a portion of the money in your account and paying yourself back. an employee can take out a loan from a work retirement account that is a defined-contribution plan ,i.e., a 401(k or a similar non-pension plan, but there is a limit. Generally, any money you borrow from a 401(k) account is tax exempt; so imposing payroll taxes on retirement plan loans is not right. You need to contact HR for more info.
I would like the option to settle this with the IRS myself when I file my taxes (as I have the maximum amount of taxes with held already as well as an additional amount) I always get a return that is 5-7 times the amount they say I owe, and I always qualify for EIC. thing is, I am a single parent, with an extremely tight budget, the amount they want to "payroll deduct" for the next 6 months is seriously 1/2 my grocery budget, and that isn't much to begin with.===>
I believe that this is not an issue with the IRS but with your employer. however if you want you can contact the IRS for advice. no penalty in contacting the IRS
Can they force me to pay them instead of handling it myself or should I be allowed to have the option to handle it myself when I file taxes.=====>>No they cannot force you to pay them ifyou want you may handle it yourself.however, aslongas you have too little taken out, you'll owe money when you file your return.
you may need
to adjust your withholding on W4 so your tax payments will match your actual tax liability. |