My boss said that in order for them to take out federal taxes you have to make at 12,000 for the year to date?

Question

My boss said that in order for them to take out federal taxes you have to make at 12,000 for the year to date?

Answer 1

Sort of, but not exactly - for the year, not year to date - ytd has nothing to do with it.  It depends on what you have on your W-4.  If you claimed two allowances, that's probably correct - if you claimed less than 2, they should be withholding something.  In any case they should  withhold social security and medicare.

Answer 2

YOUR BOSS IS WRONG.

How much is withheld for fed tax is determined by your earnings and the withholding status and #  of exemptions you submit to employer on form W-4. If you are single and not the dependent of someone else, and your total income is under $8600 you will owe no tax so you may claim exemption from withholding.

People often make general statements based on their own personal situation that do not apply to other people. This is one such case.

Answer 3

Federal and state taxes must be paid on every dollar you earn. The irs requres you to file an income tax return if you make more than $10,000.

Answer 4

He is so wrong that I am worried you will end up with a big tax liability and no social security credit.

Make sure he is paying his part of social security and taking out your taxes and sending them in.  Every year the IRS should be sending you a report.  He takes out  the money and sends it in.  You file your taxes and get back any overpayment or send in more if you owe.  Claim more dependents on your  W-4(can go over your actual number) and they take out more, claim fewer (you can go to 0) they will take out less - but you better be able to pay the difference at tax time.

No one but he sends in the taxes.  I'd be really worried about this, especially if you haven't worked there long enough to have filed taxes on your first year.

The company is supposed to take out your federal & other taxes from the first paycheck, whether it is $1 or $1,000.  Your pay stub should have all the deductions listed unless it is a small company.  Even then, they should have some record you can get.  If he doesn't take out taxes and social security, you won't get credit toward retirement.  At the end of the year, you will get a statement of earnings and amount taken out for taxes to attach to your income tax form, so they have to be keeping records.