• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

We didn’t withhold! How do we fix it?

by on
in Office Management,Payroll Management

Q. A new employee was mistakenly paid through Accounts Payable for January, so no federal or state taxes were withheld from his pay. It’s still early in the year, so we’d like to take out the taxes that should have been withheld from later wage payments. But we don’t want to leave him with no net pay. According to our calculations, it should take us two months to withhold the additional taxes. Is this OK?

A. According to the IRS’ Circular E, if less than the proper amounts of federal income and FICA taxes are withheld from an employee’s pay, you can make up the underwithholding from later payments.

Once you get this employee’s taxes straightened out, you should determine how this mistake was made, so it can be avoided in the future.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/30340/we-didnt-withhold-how-do-we-fix-it "

Leave a Comment