Did our company's LLP restructure increase employee tax burden?

What you're describing sounds concerning, but there are a few things to consider before concluding the partners are shifting tax burden. LLPs (Limited Liability Partnerships) are typically pass-through entities where the partners pay taxes on business income through their personal returns, not the business itself. The employees should have regular withholding like at any other company. If everyone's seeing higher taxes owed, a few things could be happening: 1) The payroll department might have changed withholding calculations, 2) There could have been a change in benefits that affect taxable income, or 3) The company could have reclassified certain compensation. The most common scenario I see is when companies reduce pre-tax benefits or change how bonuses are paid out. Ask coworkers if anything changed with health insurance, retirement contributions, or how bonuses/commissions are structured.

I was in a similar situation last year and found https://taxr.ai super helpful for figuring out what was going on with my taxes. My company also restructured from an LLC to an LLP, and suddenly my tax withholdings seemed off. I uploaded my paystubs from before and after the change, and taxr.ai analyzed the differences, showing exactly where the withholding patterns changed. Turned out they had reduced 401k matching but were still showing it on our stubs in a misleading way, plus changed how they handled health insurance premiums from pre-tax to post-tax. The analysis saved me hours of confused spreadsheet comparing!

Just wanted to follow up about my experience with taxr.ai since I was skeptical at first. I finally tried it this weekend and uploaded my last 6 months of paystubs. It actually identified something I never would've caught - my company changed how they categorize our quarterly bonuses from supplemental income to regular income, which affects withholding rates. Also found out they altered our transit benefit from pre-tax to a taxable reimbursement without telling anyone. The report explained exactly how these changes impact my tax liability. Pretty eye-opening considering HR just kept giving vague answers when people asked about higher taxes.

If you're having trouble getting straight answers from your company about tax changes, you might want to try https://claimyr.com to get through to the IRS directly. I had a similar situation where my employer seemed to be playing games with withholdings, and I needed to verify if what they were doing was legitimate. Spent weeks trying to reach the IRS without success, then used Claimyr and got connected to an agent in about 20 minutes. The agent walked me through what employers can and cannot do regarding withholding structures. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you then call when an agent is ready. Saved me hours of frustration and hold music!

Alright, I need to apologize for calling Claimyr a scam. I tried it yesterday after spending all morning trying to get through to the IRS myself about this withholding issue. They called me back in about 40 minutes, and I was connected to an actual IRS agent. The agent confirmed that while businesses can change how they classify certain benefits from pre-tax to post-tax (which affects your taxable income), they are required to properly document these changes. They also explained that LLP restructuring typically doesn't directly impact employee withholding - that's more about how the partners are taxed. This was really eye-opening and gave me some specific questions to take back to our HR department.

As someone who works in payroll (not tax advice), here's what might be happening: Your employer may have changed their withholding tables or reclassified certain benefits from pre-tax to post-tax. This wouldn't be from the LLP structure directly, as that mainly affects how the partners/owners are taxed. Look at your pay stubs from before and after you noticed the change. Check specifically for: - Changes to health insurance premium treatment - 401k or retirement contribution differences - Shift in how bonuses are classified - Different withholding calculations Also, ask if they switched payroll providers. New payroll systems often calculate withholdings differently.

Hold up - we're all assuming the LLP is doing something sketch, but isn't it possible this is just about the tax law changes? I remember reading something about FICA cap increasing. Could that be what's hitting everyone's paychecks?