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If you are employee and have state taxes, your employer should take out.

Posted By: sm on 2006-02-11
In Reply to: Does your MTSO take out all federal/state employee taxes? nm - I'm surprised some won't take out for the st

I reported a company to my state, who clearly defines on their internet site that if an employee lives in our state yet works for a company in another state that might not have state taxes (for instance, Florida), the company in Florida HAS to comply with taking out state taxes.

From what my state told me, they fined the company heavily for not having deducted state taxes. Check with your state first and see what the law is.

This only applies to employee though.


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I have never had a problem with an employer withholding state taxes except with one
employer. They say they do not have to but my state says they do. Just the fact that my state sent me back all their late fees because I refused to do the job of the employer tells me I was right in waiting to pay until tax time. That brought it to the attention of my state. I can't wait to see the get the penalty and interest my state will charge them. I know it will take some time for the state to research how many work in my state (and I know at least six minimally), so I will just sit back and wait. My state does not give money back to you readily. LOL High state taxes so when you get your late fees back, you know then the employer being fined is only a matter of time.
They must deduct FEDERAL taxes.. NOT STATE taxes.. if they took out state taxes.. it would be FLORID
which would only have to be refunded to you for you to pay YOUR state what you owe them which is nothing but a pain... be glad they weren't handling your state tax.. and I think in this case.. if someone at the IRS told you they have to deduct YOUR states taxes.. it is that person who is uneducated... they only have to deduce federal income tax

Does your MTSO take out all federal/state employee taxes? nm
nm
If company is in state that has no state taxes
they are not required to take out state taxes.  It's enough to keep up with your own state tax law code, could you imagine having to stay abreast of 49 other state tax codes?  The cost would be huge and ultimately passed on to us by lower line rates.  Regardless of who owes the tax, someone has to pay it.  Just a matter of convenience I guess. 
Agree. And it is up to you if you want to be non-IC but yet not have your employer pay the taxes
:+
You already pay your taxes, just employer takes
f
You are correct. The state that rules is the state the employee lives in.
My state laws has is spelled out in their Code. If another state does not withhold, they are fined heavily and if they don't withhold for years, their fines are pretty bad. I worked for a Florida co that did not withhold income tax for my state even after I brought it to their attention in the state code. They kept saying that they would eventually and never did. After two plus years and when I left, I made it known to my state all the conversations, the state refunded me all late fees they charged me and then said they were going after the company in Florida because they had many employees in our state. They deserved it. They knew better.
My state allows it after 2 weeks, with an "official" lay-off from employer
No one has to say you're unemployed, you just have to be without work. Check with your local unemployment office and see what your state's laws are.
Medware and state taxes
I was told by someone in the IRS that Medware should be taking out state taxes in my paycheck, but nothing has been done about this, and I have to pay my state taxes myself. I don't know how they get away with this.
state payroll taxes
My previous job was in the payroll department for a fairly large manufacturing company. We had employees in about 18 states other than NC. We had tax tables from any state that we had employees, and we were required to withhold based on those tables. We did have one that did not require us to withhold taxes but it wasn't Florida.
No. You have the taxes taken out for the state that you live in.
If you do not live in the state where the company is located, that state income taxes do not apply to you--only the state where you live applies to you. You do NOT work in the state where the company is headquartered. Ask any CPA and just look at the website of the state. You should not have taxes taken out for a state you do not reside because you do not have to pay taxes for a state where you do not reside. You only pay for a state where you live.
Medware & State Taxes
Actually, this is a common practice for many companies and well within the law. They can't take out your state taxes in Florida, (a) because Florida doesn't have state income tax, (b) you don't live in Florida, and (c) it would be quite a headache when tax time rolls around and you have to claim two states that you work in, even though you actually don't. I have paid my own taxes for years.

Plus, Medware states in their email that was sent to me: At this time today, if you are considering employee status we DO NOT hold out (state) income tax. We are a Florida-based company and Florida does not have state income tax. This will need to be filed by you individually depending upon what state you live in and whether or not you have a state income tax.
They also do not withhold state taxes and
there is no way that is legal in my state as it is my state law that if you are employed by an employer outside the state, that employer MUST withhold state taxes. My state has been investigating them for awhile but I still don't know what happened with that, but I will ask.

Reminds me of another company who used to withhold money for our insurance premiums. Well guess what...when we needed to use our insurance, found out there was none! They too were reported (this was not MW), but all we got was our money back that we paid for the insurance. Sad huh?

These companies are pathetic and I have no respect for this industry whatsoever.
They should take out state taxes for the state
nm
My state has it writtin in their code whose responsibility it is. It is the employer.
I just refused to do it as an employee. After the second year and my written explanation of why I did not do it (being as the employer refused), they sent me back a refund of late fees and told me that they had found many employees in Virginia with the employer I am speaking of and would be going after the company in question. How long it takes them is another story. I hope they get them because they deserve it.

It might not be the law in every state, but it is in mine. It is clear and on their books. I provided the company with that law and they paid no attention.

A good employer will follow the law and have state tax laws in place. I have never had a problem with any other employer from that state, just them.
Contact Labor Board in Employer's State
I believe it can also be handled by e mail.  However, by the time they get around to helping you, the lines you speak of should be on your NEXT paycheck and they will say there is no harm done.  The company may have a valid point if the lines are not counted until they clear QA (???) but I would definitely make sure they are on the next paycheck.
SE doesn't take out federal and state taxes, only
x
They refuse to deduct state taxes, if that's
nm
They take out for FICA. You are responsible for state and fed taxes. nm

I work for a company in Florida too who gladly pays state taxes because
they know it is the law.
As an employee, your employer pays
for your insurance, taxes, etc., and for that it is normally about 2 cpl less. I work as an IC for a company at 10 cpl, but employees start at 8 cpl.
Yes, you are an employee so they take out all necessary taxes. nm
x
So in actuality, an IC pays MORE taxes than an employee?
nm
can you tell us which state or company? Are you an employee or IC? sm
I know that a certain company in NY was investigated a few years back because of treating ICs like employees.

I hope it is not the company I work for as I am finally happy after being miserable for the last 3 years and 50 jobs.
Only hire as employee if they have 50 employees in the state you live in. NM
My state would never be one.
Not the OP, but they're supposed to take out all the other taxes as you're an employee with th
s
If you're an IC, you pay all your taxes. Otherwise you're an SE or employee. nm
s
Unless something has changed, health insurance rates vary state by state, so we may not have the
info you need.  I'm an IC so I don't have benefits.
The state you live in or the state where the MTSO is located? nm
nm
Not state by state, federal labor law - sm
and you don't have to be asked. If you work it, asked or not, they have to pay time and a half OT rate for hours worked over 40 in a week.

Taken right from U.S. Dept of Labor -
An employer who requires or PERMITS an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA)MUST receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest.

Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee's representative). The FLSA does not require extra pay for weekend or night work or double time pay.

Different state to state. You would be surprised to find

IC can be defined differently state to state.  Even the IRS cannot come up with a definitive set of rules.  You would be surprised how many ICs actually get unemployment in some states.  If the unemployment claim form asks specifically if you are an independent contractor, do not lie, but if it does not, do not volunteer it.  Let the company prove you are a true IC according to the rules of your state.  All you lose is a few minutes filling out the claim form.  I would only do it as a last resort.  If you can find work fast, by all means go for it, but the way things are now with all the VR and off-shoring, it is a backup if you cannot find work.  No one should go hungry because they are afraid to file for Unemployment as an IC. 


 


It varies from state to state
nm
Varies from state to state
My own state recognizes partial unemployment, too, when your work gets cut down to half of your regular workload/income.
Statuatory employee versus regular employee....
Can someone tell me the difference between a statuatory employee versus a regular employee?  My company offeres IC or SE status....I am confused about whether switching over the SE would benefit me more than IC status that I have been for some time with them?  What are the benefits and disadvantages of being an SE versus IC?  Thanks for all of your help!
Sorry, that should be employer!
NM
If I were an employer
and observed the way some of the people behave on this board. I think I'd be giving psychological tests as well.
As with any employer..
They expect you to work your shift. If you want a schedule that is flexible, become an IC.
You need to ask your employer how they
count lines. Vary from MTSO to facility. Everybody is different.
No. If you are an IC your employer does
not withhold anything, you are totally responsible for federal and state and SS taxes. Most companies pay the IC a higher rate than employees because taxes are not withheld.

They are an at-will employer
and if you can't do x-number of lines in an x-amount of time with 98% or better accuracy, 40+ hours a week on a strict schedule, don't even bother. You can just imagine the kind of accounts they have.
No, this they cannot do, not an employer,
this is discrimination.
Health insurance company operate like that.
Do you ask your employer's permission to do everything
in your life?

I don't. I did what was best for me.

They purchase my skills and expertise from me while I am on the clock for them. I don't share their secrets with the enemy nor vice versa. I have maintained my quality and production the entire time I've worked for them.

I don't ask for permission before I go do what I need to for my household.

You're right. MQ doesn't seem to have a problem with it. Spheris would not feel the same way, probably.
MDI is very good as an employer, think they
have IC status but not sure and also may have SE status.  They are flexible as long as the accounts stay in turn-around time.  They are good to work for.  I have been there since 3/2004, started part time, went full time in 05/2004 after I tried them out to see how I would like it. 
To tell current employer or not? SM

I am currently looking for a new job.  I love it where I work now, but need benefits and they do not offer them.  On applications they want to know if they can contact current/prior employers.  I certainly don't want to put no (as I'm quite sure that would raise a red flag), but I just worry how my current employer will react if he gets a call from prospective new employers asking about me.


Should I write my current employer and explain why I'm looking for work rather than let him be shocked to get a call out of the blue?  Guess I already know the answer, but am so worried.  Would hate to burn my bridges if the new job doesn't work out.  Ugh...I sound terrible.


What would you do?


Thanks!


By all means ask. I have and my employer was
They want you to be as productive as possible. If you're not producing lines, they aren't billing and receiving for them either!


Do you always believe what your employer tells you?
I worked for a local company and transcribed university hospital and VA reports.  The company was pretty busy - 100 MTs across the country and the owner whined all the time about how he couldn't make ends meet and couldn't pay MTs more - blah, blah, blah - but I certainly never got any tissues out during these meetings.  We found out from the bookkeeper later that the company charged and got18 cents per line and that was 6 years ago.  Then he increased his charge to a large account the next contract bid and lost it and and didn't have the guts to lay off by senority and just let everyone keep working with promises they were seeking new accounts that didn't happen very quickly at all while we were all out of work and scrapping to find what we could.  It is called GREED.   
been there, done that - on the employer side..sm
not a lawyer, and not MT environment at that time. Did briefs, etc when working as secretary in legal dept of company (factory type/employee paid piecemeal wages for on-site work). Unless you can prove the time card was fraudulently filed (the hours were not actually worked), the company is responsible for payment of the OT. The advanced approval is not part of the law, only of the company policy. The company's recourse is through discipline for failure to follow company policy, but cannot withold pay. The laws have been tweaked some since then, but not to that point.
If you are IC, the company is NOT your employer.
x
Best employer who provides equipment
I may be changing jobs soon.  I will spare you the gory details of why.  Anyway, can someone tell me who you consider to be the best employer?  I need one who provides the employee's equipment.  I am also looking for one that does not offshore, pays well (I have 25 years experience), good insurance, steady work, minimal ESL, HOPEFULLY DAY SHIFT OPENINGS M-F, and let's see, I guess that would mean I am looking for the perfect employer!   Opinions invited!
As long as the new employer does not
contact them, and you can request they not, how would they know??
If Transolutions is not your employer
I don't care what location your talking about.  Transolutions in Illinois advertises they do not outsource. The connection to India is clearly the company in Illinois.