What to do if my employer did not pay any of my taxes or medicaidSSI but my paycheck was deducted for these amounts?

All of the money that was taken out of my checks last year did not go to whom it was suppose to. What can I do about this?

Asked on March 13, 2012 under Employment Labor Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

1) First, talk to the employer (if you haven't already); if it is an innocent mistake, they can and should put it right by remitting the proper sums.

2) If the employer does not correct matters (or you believe it was not an innocent mistake), you can sue the employer for these amounts--it  was your money, and you are entitled to it. Once  you get it, you can then arrange to remit it properly (see below).

By the way, you can sue the employer; if the employer is not a corporation or LLC, you could sue the owner(s); and you may be able to sue the specific employee (e.g. controller, bookkeeper) responsible for this.

3) Speak with a tax professional, like a CPA (not just a tax preparer, like somone in a strip mall storefront) about how to bring this matter to the attention of the tax authorities and properly account for it, so as to avoid any tax liability. Note that you may have to yourself pay the missing amounts, at least some portion of them, and then seek recovery from the employer--the tax professional can help you figure this out.

4) If you believe this was done criminally--that is, the money was stolen--you may wish to also contact the police or other law enforcement.

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