Is it illegal for my emplyer to deduct taxes from my check, and him not pay them to the state or federal government?

UPDATED: Sep 30, 2022

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Is it illegal for my emplyer to deduct taxes from my check, and him not pay them to the state or federal government?

My employer has been deducting taxes on all employees, but has not paid them. I want to know what can be done about this, because I am showing no income since the beginning of the year.

Asked on July 13, 2016 under Employment Labor Law, Georgia


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, this is highly illegal. Failure to pay employment taxes is essentially stealing from the employees. The IRS pursues business owners who don’t follow the law and they face civil or criminal penalties for doing so. The IRS encourages employees to report an employer ithat s failing to properly withhold/pay federal income/employment taxes. Taxpayers can contact the IRS at 1-800-829-1040 or report suspected tax fraud by calling 1-800-829-0433.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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