Announcement

Collapse
No announcement yet.

Overtime/employer tax evasion

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Overtime/employer tax evasion

    I've worked at a restaurant in Dallas for about five months now while looking for permanent employment. I never filled out a W-2 and the employer has paid in cash the whole time with no withholdings. I didn't say anything at first, but brought it up recently now that we know each other better. He gave some story about how we're set up in a contract capacity. But shouldn't we still have taxes and paperwork? Anyhow, I recently worked 110 hours in a two week period and he's refusing to pay me the overtime due. I'm afraid I might be stuck because I'm technically probably not even employed there. I was told I could leave and go work some place else if I didn't like it. That's the easy part. I still really want to bust this guy. Any help on the matter would be great. Obviously, I know that informing on him would implicate me as well, but I'm in full understanding that I owe taxes and I'm not overdue. He's been doing this for years now.

  • #2
    JonR: Shouldn't we still have taxes withheld and paperwork? Absolutely!

    JonR: I'm afraid I might be stuck because I'm technically probably not even employed there.

    You "technically probably" are employed there.

    JonR: I recently worked 110 hours in a two week period and he's refusing to pay me the overtime due.

    Contact your state's labor boad or the federal department of labor. They are there to help resolve problems just like this.

    JonR: I still really want to bust this guy.

    You can call and report him to the IRS - (800) 829-1040.
    Barry S. Phillips, CPA
    www.BarryPhillips.com

    IRS Circular 230 Disclosure: This response is intended to provide general information and written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.

    Comment


    • #3
      FYI, your overtime must be calculated on a weekly basis, not bi-weekly. This may not make any difference in your case but theres a possibility it could.

      e.g.
      1st week :
      75 hours
      2nd week:
      35 hours
      This is a grand total of:
      110 hours
      another example:
      1st week:
      60 hours
      2nd week:
      50 hours
      Total:
      110 hours

      While this might appear equally compensable, it is not as you should be paid 35 hours overtime for the first example, and only 30 for the second example.
      My intention is not to argue over who is wrong/right. I am here for the discussion and to learn and teach. If you dislike what I have to say or think I question you when I shouldn't, then by all means add me to your ignore list.

      Comment

      Working...
      X