Past employer not paying me for my hours ; need advice

[freejumps]

I worked at a local shop for a few weeks at beginning of summer. Ended up getting a job I didn't expect and couldn't pass it up, so I gave a week's notice and finished up the days I was scheduled for. Note this is a husband/wife owned shop, not a 'business' per say, so two weeks notice not needed. Only 3-4 teenagers + the couple make up their employees.

Anyway, it's been almost 4 weeks and they are giving me the workaround when I come in to get my paycheck or email them, etc. I should have gotten paid 3 weeks ago. Problem is, they pay under the table by check (which I didn't really know), so I'm going to have trouble if they refuse to pay me, correct? (ie. law can't help me).

I've considered using some facts on how they conduct business (ie. pay under table = no no from IRS) for 'leverage' but I don't want to stoop to their level / blackmail, which is what that'd be I suppose.

What can I do? Is it possible to go to small claims? I doubt so since paying under table isn't legit - but I have no problem reporting my earnings and paying my share of taxes, I just want my $400, or rather for them NOT to have my $400.

Note: I didn't sign anything or fill any papers before I started working. I do have email exchanges, my hours written down, etc though.

Cliffs:
-Worked at Mom/Pop shop for month. They pay under table.
-Got new job, gave them notice, etc.
-Couple is giving me workaround when I ask about paycheck, been a month so far.
-I'm pissed.

 

[SunnyD]

Get a lawyer.

 

[Gibson486]

yeah...under the table means you lose most, if not all, your rights. It does not matter if you are willing to pay taxes for it now.....you already evaded the taxes.

 

[KeithTalent]

yeah...under the table means you lose most, if not all, your rights. It does not matter if you are willing to pay taxes for it now.....you already evaded the taxes.

It sounds as if he was not aware of the mechanism with which he would be paid and he has not actually been paid yet, so he can still remit the taxes by the end of the tax year. That's how it works up here anyway.

The shop is who should be worried. If this is their common practice, they are the ones that could be in trouble with the IRS.

OP: you should tell them you are going to get a lawyer and take them to court. They should pay up pretty quickly then.

KT

 

[BoomerD]

What state are you in?

Contact your state labor board.

While you are technically in violation of tax laws, you can always argue that this was out of your control, and that you requested to be paid legally.

However, the burden of proof for the time/wages you're owed will be on you.

 

[PaNsyBoy8]

Don't they get in more trouble than you do for paying you under the table? I'm sure if you bring it up that you are going to file small claims, you'll get paid pretty quickly.

 

[BoomerD]

Don't they get in more trouble than you do for paying you under the table? I'm sure if you bring it up that you are going to file small claims, you'll get paid pretty quickly.

Yep. They're avoiding payroll taxes. That's something that the state and IRS take VERY seriously.

Not only are they not paying income taxes, but they're also not paying unemployment insurance, work comp, and a myriad of other payroll taxes. (depending on the state)

 

[darkxshade]

Steal some expensive merchandise and offer to sell it back to them for your pay.

 

[Homerboy]

What state are you in?

Contact your state labor board.

While you are technically in violation of tax laws, you can always argue that this was out of your control, and that you requested to be paid legally.

However, the burden of proof for the time/wages you're owed will be on you.

He didn't violate any laws YET though did he? There is nothing wrong with getting paid cash for work. You just damned well better claim that cash income on your year end taxes.

 

[KeithTalent]

He didn't violate any laws YET though did he? There is nothing wrong with getting paid cash for work. You just damned well better claim that cash income on your year end taxes.

Yes, this is what I was saying. The company is in violation, but not the OP yet.

KT

 

[ObscureCaucasian]

yeah...under the table means you lose most, if not all, your rights. It does not matter if you are willing to pay taxes for it now.....you already evaded the taxes.

He hasn't evaded them unless he didn't report them to the IRS which he only has to do once a year right?

 

[dabuddha]

Fuck them. You earned the money. Tell them to either send your paycheck within 5 business days or you'll be letting the IRS know their business practices.

 

[dfuze]

Doubt the money is worth the costs of a lawyer.

Honestly, if you want the money, don't worry about "stooping" to their level.

 

[BoomerD]

He didn't violate any laws YET though did he? There is nothing wrong with getting paid cash for work. You just damned well better claim that cash income on your year end taxes.

Yes he did. AFAIK, IRS tax code requires that he have taxes withheld from his pay. There are some exemptions for self-employed contractors, but even if he could claim exempt on his income tax withholding, he's still required to have social security and medicare withheld. There's no exemption for an employee on those.


http://www.irs.gov/publications/p15/ar02.html#en_US_publink1000202367

"Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes.

Income tax.

Social security tax.

Medicare tax.

Federal unemployment tax (FUTA)."


"Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. See the Form W-4 instructions for more information. However, the wages are still subject to social security and Medicare taxes."

 

[lxskllr]

I'd go to the shop and take a suitable amount of merchandise to make up for the pay. If they don't like that, they can pay in cash(not a check), or talk to the IRS about it.

 

[joebloggs10]

Yes he did. AFAIK, IRS tax code requires that he have taxes withheld from his pay. There are some exemptions for self-employed contractors, but even if he could claim exempt on his income tax withholding, he's still required to have social security and medicare withheld. There's no exemption for an employee on those.

The burden for such withholding falls unto the employer not the employee. Otherwise an employer could "fire" someone for cause just by paying them w/o withholding anything, reporting them to the IRS as a tax dodger, then letting them go for cheating on taxes.

 

[KeithTalent]

Yes he did. AFAIK, IRS tax code requires that he have taxes withheld from his pay. There are some exemptions for self-employed contractors, but even if he could claim exempt on his income tax withholding, he's still required to have social security and medicare withheld. There's no exemption for an employee on those.

Is it not the employer that is responsible for withholding that? Not the employee.

KT

Edit: what the guy above me said

 

[Gibson486]

He hasn't evaded them unless he didn't report them to the IRS which he only has to do once a year right?

Yes, given the length of time, yo could spin it saying that you were going to submit tax info at the end of the year.

 

[kranky]

When you say they are giving you a runaround, what exactly are they telling you?

 

[BoomerD]

The burden for such withholding falls unto the employer not the employee. Otherwise an employer could "fire" someone for cause just by paying them w/o withholding anything, reporting them to the IRS as a tax dodger, then letting them go for cheating on taxes.

I agree with your first sentence...the burden for withholding IS the responsibility of the employer, however, should the employee fail to provide a valid W-4, the employer is required by law to withhold at the "single and one" rate. Unless the employer is going to forge his signature on a falsified W-4, the rest of your argument won't wash.

However, the burden on the employer is why I said earlier:

While you are technically in violation of tax laws, you can always argue that this was out of your control, and that you requested to be paid legally.

We went through something similar a few years back. My wife's employer suddenly changed payroll procedures, and instead of a proper payroll check with the appropriate stub detailing deductions, everyone was paid by the employer's personal checking account...with no itemization for payroll deductions.

Turned out, the employer had stopped paying payroll taxes...the company closed its doors after about a month of this. She never got a W-2 to file taxes on the income and we contacted the IRS for help. We used her previous pay stubs to calculate her gross income, they allowed her to calculate her withholding for the balance of time based on what had been withheld on the payroll stubs, and they went after the employer for back taxes. They ended up taking his house, his cars, and his other assets because he hadn't been paying any of his payroll taxes. He owed several hundreds of thousands of $$ to the IRS and the Kahleeforneeya taxing agencies.

 

[JS80]

Send them a letter saying you will go to the labor board if you aren't paid by X date. They will most likely pay then.

 

[JS80]

I agree with your first sentence...the burden for withholding IS the responsibility of the employer, however, should the employee fail to provide a valid W-4, the employer is required by law to withhold at the "single and one" rate. Unless the employer is going to forge his signature on a falsified W-4, the rest of your argument won't wash.

However, the burden on the employer is why I said earlier:





We went through something similar a few years back. My wife's employer suddenly changed payroll procedures, and instead of a proper payroll check with the appropriate stub detailing deductions, everyone was paid by the employer's personal checking account...with no itemization for payroll deductions.

Turned out, the employer had stopped paying payroll taxes...the company closed its doors after about a month of this. She never got a W-2 to file taxes on the income and we contacted the IRS for help. We used her previous pay stubs to calculate her gross income, they allowed her to calculate her withholding for the balance of time based on what had been withheld on the payroll stubs, and they went after the employer for back taxes. They ended up taking his house, his cars, and his other assets because he hadn't been paying any of his payroll taxes. He owed several hundreds of thousands of $$ to the IRS and the Kahleeforneeya taxing agencies.

lol kick a man while he's down. Good work asshole.

 

[SR1729]

My guess is that the mere mention of calling the labor board or filing in small claims will "motivate" them to pay you. They have far more to lose then you if it comes out they're paying people under the table.

 

[PieIsAwesome]

The gains you made by not paying taxes are probably greater than this loss of pay, so if you don't end up getting paid you still come out ahead.

 

[GoPackGo]

Sounds like the OP didn't get any paycheck yet. So there is no tax owed yet. I would call your states Department of Labor. Also think of it this way:

If you worked there and they aren't paying into Workman's Comp and you got hurt, you would have nothing to help with your expenses and lost wages.