paycheck questions--law exp a good idea!

[Kisseslikepearls]

I work for a franchise owner for a certain cookie company. I know the owner is a bit shady since one of the girls who works for him is paid under the table in cash and lets not go into the lack of workers comp etc . But my question deals with my paycheck. For example, I get paid 7/hr. He takes out 7% in taxes. I haven't filled out any kind of paperwork of any kind.

Also, while I'm coded as parttime (for benereasons I assume) I work fulltime hours...last pay period I was sick so didn't go in, but I still had 79 hours for two weeks.

My dad says in reference to the lack of workers comp, he doesn't think the guy employees enough people to need it (he thinks 15 is the magic number).

Assuming he's taking out this money and not paying the govt--what do I need to do? My paycheck is a business check, not a pay check.

[LyssaRene]

Re: paycheck questions--law exp a good idea!

Is federal tax taken out of your paycheck? If it is not, at tax time you are going to have a nice tax bill.

The best thing since laws differ by state of what is required of an employer, is to contact your local Department of Labor. They will be able to either answer your questions based on your states laws or refer you to someone who can.

[Peytonn]

Re: paycheck questions--law exp a good idea!

I'd start with asking him point blank....... 'you're taking out taxes on me... how are you paying IN taxes on me when I haven't done any paperwork?'

[texwife&mom]

Re: paycheck questions--law exp a good idea!

Where do you live? I can tell you that with him only taking out 7% he is not taking out fed tax and medicare. In Texas(no state tax) the min taken out is about 18% and that would be with numerous dependents.

[Peytonn]

Re: paycheck questions--law exp a good idea!

right... 7% isn't much of anything.... it's legal to NOT pay in taxes on your employees IF you do some form.... I forgot.. it's got a number... like a 1099 or something.. it says that the employer PAID you that much... but the responsibility to pay in taxes to state, local, federal, or whatever is the EMPLOYEE responsibility....

but.. either way... he should explain to you what the plan is... what the 7% is used for...


also.. your age affects how he has to handle some of these things....

but basically it's your responsibility to find this stuff out and take care of it... and he knows that..... you're probably right that he's not the most scrupulous person... or he would have already explained it...

my hubby runs his own company..... and they don't get a CHECK until they've returned the forms that designate how they want their taxes handled (I mean single, married, dependents .. how many, etc... )

like I said... I don't know how old you are... but start with asking questions.. maybe talking to your parents... or whatever.....


good luck!

[Kisseslikepearls]

Re: paycheck questions--law exp a good idea!

Thanks....I'm 19 by the way, a Florida citizen and technically a dependent due to college. Due to several conversations, my boss does know this (the man is in about a thousand violations of ), but asking about how he can take taxes without paperwork is definently a good idea. I have asked where the money is going to and he's told me taxes. On the face of my check (again, a business check, not a payroll check) he writes my gross pay for example, $534.21 and my net pay, which is actually what is being paid, for example, $497.56. It seems to average about 7%. A very close friend of mine is seperated and has two dependents...his is 11% and what made me decide to ask yall.

I have been photocopying the face of my checks--just seems like a good idea, but for what, I have no idea. I'm definently scared about that tax bill come April. As a college student, there's not much in the bank at any given time.

Definently going to contact the DoL and see what they have to say. Thanks for all yalls help.

[Brook]

Re: paycheck questions--law exp a good idea!

Yep, Peytonn is right. It's a 1099 form. That's what I do with all of my employees, I 1099 them. I take nothing out of their checks.

I'm glad you're going to ask the questions and contact the DOL. Keep us posted. I'd be interested to hear what the story is!

~Brook

[ladyinred]

Re: paycheck questions--law exp a good idea!

While you're calling the DOL, maybe you want to call the head office of the franchise and ask them what their policy is? I don't know much about U.S. laws and even less about tax laws anywhere, but I know that franchisees are required to run their businesses in a certain way and they are given a list of things they can and can't do/sell, etc. and the franchisor might be interested to know what this guy is up to. Just a thought.

[2big4mysize]

Re: paycheck questions--law exp a good idea!

the 7% is very close to the social security and medicare tax part you as the employee pay. you can check on the Social security actually being paid in with his matching part by requesting a copy of your statement of earnings but he has until april of next yr to actually pay it.

Small companies are exempt from the workers comp stuff and each state sets its own limit. you can find out on your state's web site what the numbers are.