kenbb
10-30-2006, 12:16 PM
This is an update to my situation that I had posted about a while back. Basically, my former employer withheld money from my wages, ostensibly for payroll taxes, but never sent that money to the state. Now the FTB wants me to pay tax on income I earned from that employer, even though I have paid it.
The legal crux of the matter revolves around one basic fact: the employer never registered with EDD as an employer. This means that there is no possible way for him to make any of my payroll tax payments. Even though he did provide me with a W2 (for 2005) showing payroll deductions, the number he used for the state employer ID (box 15) was invalid, therefore the FTB will not accept the W2 as proof of tax being withheld - note that the FTB finally explained this to me: if that number was valid, they would then accept the W2 as proof.
So now the only legal proof FTB will accept, other than a legal statement from the employer (yeah right?) is an end of year payroll check stub. Unfortunately (but not unexpected) the employer refused to give me stubs when he paid me (which was always by direct deposit), and he also refuses to provide me with copies of any of my pay stubs, as required by law.
I have filed a payroll fraud complaint with EDD. They appear to be the only state agency that can legally do anything in a situation like this. Unfortunately, that was 6 months ago.
I had a long, and somewhat heated, discussion with the FTB taxpayer advocate (http://www.ftb.ca.gov/aboutftb/taxpayer_advocate/index.html) - who eventually explained the part about the W2 to me. I asked if there was anyway to appeal my case before a judge, or someone of authority. He said no, the FTB does not take people to court (they only take your money :-( ). He also said that my only recourse was to pay my tax bill, then file for a refund. But, unless I had that proof, I would still be in the same situation.
Okay, so that's where I'm at. Basically sitting around waiting for EDD to do their audit, while trying to keep the FTB at bay.
Moral of the story: ALWAYS get a paystub when you are paid, and make sure it is valid.
I did want to thank those people who responded back to the original thread: pattymd, joe916, turbowray, Megan, and anyone else who I might have missed. You really did provide me with some great advice and pointers, if not moral support.
The legal crux of the matter revolves around one basic fact: the employer never registered with EDD as an employer. This means that there is no possible way for him to make any of my payroll tax payments. Even though he did provide me with a W2 (for 2005) showing payroll deductions, the number he used for the state employer ID (box 15) was invalid, therefore the FTB will not accept the W2 as proof of tax being withheld - note that the FTB finally explained this to me: if that number was valid, they would then accept the W2 as proof.
So now the only legal proof FTB will accept, other than a legal statement from the employer (yeah right?) is an end of year payroll check stub. Unfortunately (but not unexpected) the employer refused to give me stubs when he paid me (which was always by direct deposit), and he also refuses to provide me with copies of any of my pay stubs, as required by law.
I have filed a payroll fraud complaint with EDD. They appear to be the only state agency that can legally do anything in a situation like this. Unfortunately, that was 6 months ago.
I had a long, and somewhat heated, discussion with the FTB taxpayer advocate (http://www.ftb.ca.gov/aboutftb/taxpayer_advocate/index.html) - who eventually explained the part about the W2 to me. I asked if there was anyway to appeal my case before a judge, or someone of authority. He said no, the FTB does not take people to court (they only take your money :-( ). He also said that my only recourse was to pay my tax bill, then file for a refund. But, unless I had that proof, I would still be in the same situation.
Okay, so that's where I'm at. Basically sitting around waiting for EDD to do their audit, while trying to keep the FTB at bay.
Moral of the story: ALWAYS get a paystub when you are paid, and make sure it is valid.
I did want to thank those people who responded back to the original thread: pattymd, joe916, turbowray, Megan, and anyone else who I might have missed. You really did provide me with some great advice and pointers, if not moral support.
