Discussion:Payroll Problem
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Discussion Forum Index --> Basic Tax Questions --> Payroll Problem
Discussion Forum Index --> Tax Questions --> Payroll Problem
| 7 September 2008 | |
| I have a client who decided to pay one of his employees straight pay for work he did without deducting or paying taxes. The employee later had proper deductions for payroll taken out and the client filed his own 941 returns. I came in late in the year to start his returns to find this problem. What can I do at this point to remedy the situation? | |
| 7 September 2008 | |
| It's not clear - who filed 941s - the client or the "employee"?
Which year are you talking about? | |
| 7 September 2008 | |
| 2007 is the tax year in question, the client filed the 941s. He just wrote him a check for the hourly wage times the hours worked. No Federal deduction, no ss taxes, nothing deducted at all. On all other payroll payments, everything was deducted and paid. This payment didn't even hit the 941s. | |
| 7 September 2008 | |
| Does the client want to fix it or do you feel your job is to help the IRS collect tax revenue? | |
| 7 September 2008 | |
| I'm filing 2007 years taxes after extention and I need to classify the payment. If I put it as payroll...his 941 & associated w2, etc. won't jive. | |
| 7 September 2008 | |
| Call it services or payroll. Payroll line does not need to jive with the IRS. | |
| 7 September 2008 | |
| I would classify it as way too much time on your hands. | |
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