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PayStubs and Type of Checks used for PayRoll Maryland

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  • PayStubs and Type of Checks used for PayRoll Maryland

    OK, here we go this is a whopper. I was recently 'let-go' from my Manager position by my employer. My shop was located in Maryland with less than 10 employees including myself and his office is in NYC. Let me make clear that my previous employer has been in business for the last 3 years with a total of 8 locations. So his actions can't be from "just opening" and getting started adjustment periods and such.

    The first 6 paychecks my employees and I received were all hand written regular bank checks that except for his company name and address in the corner look just like anyone else's personal checks. No kind of pay-stub was included. After receiving the second check like that I asked the owner a few questions and discovered that no taxes or deductions or anything at all were taken out, we were paid 100% of our hourly earnings. Sounds great except for when tax time comes around, Child support deductions weren't done.

    Every payday you were considered lucky if you were paid for all of the hours worked or if overtime was paid. Every time anyone was 'underpaid' or over time was not paid, whatever the difference is was paid by cash. One of my employees even had one of his checks bounce. ( thanks to your site we found out how to handle that).

    After being 'let-go' I inquired with the COO about what I am supposed to do come tax season w/ my W-4. How can I be sure that it is accurate so that I am not penalized by the IRS or filing a false tax return? He told me that only what I have pay-stubs for would be on the W-4 and all other checks were paid out as 'Out of Pocket Expenses."

    HELP!?!

  • #2
    What a jerk.

    First of all, hopefully you have kept a record (or can recreate it) of the total amount of pay you received. Perhaps from your bank statement (if you deposited the checks in total). If all of your pay was like that (net amount = gross pay hours X rate), then you should be getting a 1099-MISC if the grand total was over $600, NOT a W-2 (it's not a W-4 form). You MAY get a 1099-MISC for the payments that were made without taxes being withheld, and a W-2 form for any payments that were made where taxes were withheld.

    In any case, you as the individual taxpayer are responsible for claiming all your income as best you can with your records, whether the employer has complied with the law regarding taxation or not, or whether or not he issues the required information forms (1099-MISC and/or W-2).

    Did the employer GET a child support order to deduct from your pay? If they did, and refused to honor it, they can be held liable for any deductions that they were required to make by law and did not.

    BTW, the fact that payments were made that looked like a "personal check" is not, in and of itself, illegal. What IS a violation of Maryland Wage and Hour law is not providing a pay stub or other document detailing your deductions. For this, you can file a complaint with the state Dept. of Labor. Be sure to tell them that, at least for part of the time, you were being paid as an independent contractor with no taxes withheld, although you should have been being treated as an "employee" (I'm assuming you didn't meet the criteria for an IC).
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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