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Can you sue your employer for entering the wrong Federal Tax Withholding?

Batavia, NY |

On my W2 I had noticed that my Federal withholding is only .35 Cents. But my State withholding is 188.62. Can I Sue my Employer for entering the wrong withholding?

Attorney Answers 4

Posted

Ask your CPA or tax attorney. I will add tags to increase your chance of a response from a tax lawyer.

David A. Mallen offers answers on Avvo for general information only. This offer of free, general answers is not intended to create an attorney-client relationship. If you need specific advice regarding your legal question, you should consult an attorney confidentially. Many experienced California labor and employment attorneys, including David A. Mallen offer no-risk legal consultations to employers and employees at no charge. David A. Mallen is licensed to practice law before all state and federal courts in California, as well as the California Labor Commissioner and the California Unemployment Insurance Appeals Board. Failure to take legal action within the time periods prescribed by law could result in the loss of important legal rights and remedies.

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4 comments

David Andrew Mallen

David Andrew Mallen

Posted

Also, just have your employer correct the mistake, obviously, so you don't have any more issue

Asker

Posted

He had laid me off on Christmas Eve . Now he is an ex-employer

David Andrew Mallen

David Andrew Mallen

Posted

Sorry. If there is not much money at stake, it will be tough to find a lawyer even if you have a case. You can ask the IRS for advice for free.

Asker

Posted

Thank You.

Posted

Probably not, but you might ask for verification that the W2 is correct. The withholding would have been showing on your paystubs, and the W2 should be the same as your last year-to-date pay advice. If it is true that only $35 was withheld all year long, your failure to notice it makes you culpable along with employer.

Best wishes for an outcome you can accept, and please remember to designate a best answer.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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6 comments

Asker

Posted

It was 35 cents and when I noticed on my W2 that something looked wrong I went back to my old stubs and they all say the same. Yes I should have payed closer attention I looked at the hours and checked them with my time card. Could this be discrimination as I also got laid off on Christmas eve?

Paula Brown Sinclair

Paula Brown Sinclair

Posted

A regrettable clerical error, maybe, but not discrimination. Also, you have suffered no loss and may or may not have to pay any income taxes.

Asker

Posted

The reason I claim what I do is because I am a single mom. I counted on that money to have a return. Now I may have to pay and not get anything back.

Paula Brown Sinclair

Paula Brown Sinclair

Posted

With earned income credit, you may still have refunds, just not so large.

Asker

Posted

That's not fair to me. I did my paperwork correctly. And now not only did i get laid off on a Holiday I'm not going to be getting that refund that I filed for?

Paula Brown Sinclair

Paula Brown Sinclair

Posted

You have a very poor understanding of how tax withholding works. When it come time to file your tax returns, have someone help you and explain why there is no unfairness involved.

Posted

You can calla nd try to resolve this amicably or have a lawyer try to do the same on your behalf. At the end of the day, the actual monetary harm to you has to justify the initiation of a lawsuit.

This answer is made for educational purposes only. By using or participating in this site you understand that there is no attorney client privilege between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed professional attorney that practices in the subject practice discipline and with whom you have an attorney client relationship along with all the privileges that relationship provides. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party, any partnership, investment plan, arrangement, legal structure or other transaction addressed herein.

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Posted

Probably not. You filled out a W4 form and the withholding is usually based on that. If they made an error, the question is whether it caused you damages and why.

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