How does my employer not paying the monthly FIT (fed income tax?) payments affect me?

Question

I recently found out the owner of the place of my employment has instructed the finance manager (a family member) to not pay the monthly FIT. I believe this has gone on for several months now.

Will this affect me personally as an employee of the company?

What could be the concequences for the company if the FIT is not paid for several months due to orders from it's CEO?

(I would appreciate professional advice only please, lawyers or other financial/accounting professionals)

Answer 1

As long as it shows it is coming out of your pay it shouldnt effect you.  When you get your w2 at the end of the year make sure it is correct.

Answer 2

As long as the taxes were withheld from your pay you will receive credit for them as long as you have documentary evidence that they were withheld, i.e. paystubs and/or a W-2 that shows the withholdings.

On the employer's end, all corporate officers and owners, as well as the employees who fail to pay the taxes as part of their job duties, will be PERSONALLY liable for the unpaid taxes.  

The IRS takes an EXTREMELY dim view of employers who fail to pay Public Trust Fund withholdings to the government.  This is a powerful sign that the company is going under. You'd be well advised to polish your resume and jump ship as quickly as possible!  

BTW, if you are responsible for payment of the taxes in ANY way as part of your job duties, you are required BY LAW to ignore your employer's instructions and to pay the taxes!  If you don't ignore your employer's instructions, YOU can be held personally liable for the payment of ALL of the unpaid taxes.  (This is no joke!  Bookkeepers HAVE been held liable for huge tax bills left behind by defunct corporations when the corporate officers cannot be found.  This is one tax debt that can rarely if ever be cleared through an Offer in Compromise!)

Answer 3

Do you mean they are deducting it from your paychecks but just not paying it in to the IRS?  It might cause you a little hassle at the end of the year, but if your W-2 shows what was actually deducted, you'll be OK - but keep ALL of your pay stubs.

They will end up in significant trouble with the IRS, but that's their problem not yours - although since it very likely indicated that the business is in financial trouble so your job could be shaky.

Answer 4

You should make sure that your pay stubs clearly and correctly reflect the proper withholding of SS, Medicare, and your tax withholding.  Compare those to your W-2 at the end of the year.  If all of that is OK there are little consequences for you.  Those at the company that are involved can and will be in big trouble if this is not rectified by the end of the year.