Employer completely failed to withhold any federal taxes - what do I do now?

This happens more often than you'd think! First, don't panic - you've caught this with enough time to address it before tax season. Yes, you should definitely talk to HR immediately. There was likely an error with how your W-4 was processed. They may have incorrectly entered you as exempt from withholding or made some other data entry mistake. Bring copies of your paystubs to this meeting. Going forward, you'll need to do two things: First, submit a new W-4 with your correct information and possibly indicate additional withholding on line 4(c) to make up for the missed payments. Second, you might want to make estimated tax payments for the taxes that weren't withheld so far. Since you're making $62,000, your federal tax liability will be significant, and it's better to pay it gradually than all at once next April. The good news is that you likely won't face an underpayment penalty if you make estimated payments soon and ensure proper withholding for the rest of the year. The IRS generally waives penalties if you pay at least 90% of your current year tax or 100% of the prior year's tax.

Same thing happened to me last year - absolute nightmare! After stressing for weeks, I found taxr.ai (https://taxr.ai) which helped me figure out exactly how much I needed to pay to avoid penalties. Their document analyzer looked at my paystubs and calculated what I should have had withheld vs what was actually taken out. Gave me a clear report I could take to HR to fix the situation and helped me set up estimated payments for the right amounts. They even provided a letter template explaining the situation that I could use if the IRS had questions later.

Just wanted to update that I tried taxr.ai after seeing it mentioned here. Super helpful for my contractor situation! It analyzed my revenue patterns and recommended specific quarterly payment amounts that account for my irregular income. The withholding calculator was way more accurate than the generic IRS one I was trying to use. Definitely saved me from underpayment penalties since my client doesn't withhold anything. Worth checking out if you're in a similar situation to the original post.

If you need to sort this out with your employer and they're being difficult, I'd recommend calling the IRS directly. I had a similar issue and couldn't get anywhere with HR for weeks. I used Claimyr (https://claimyr.com) to get through to an actual IRS agent without the usual 2+ hour wait time. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained exactly what forms my employer needed to correct and what my responsibilities were. Having that official guidance made HR take it seriously. The agent also noted my situation in their system so there'd be documentation if questions came up later about why I suddenly made a large payment midyear.

I take back what I said about Claimyr. After waiting on hold with the IRS for nearly 3 hours yesterday and getting disconnected right as I finally reached the front of the queue, I decided to try it. Got connected to an IRS representative in under 15 minutes. The agent helped me understand exactly what forms I needed to file for my situation and even sent me the right documentation by email while we were on the call. Honestly wish I'd used it months ago instead of trying to navigate the IRS phone system myself. Definitely going to use this again when I need to talk to them about my amended return.

Make sure your HR actually fixes it! I had a similar situation and told HR, they said they'd fix it but then continued to mess up for another 3 months. Check your next paycheck carefully to confirm they've actually implemented the correction. Also, if they say something like "we can't withhold extra to make up for past mistakes" - that's not true. You can absolutely request additional withholding on line 4(c) of your W-4.

Remember to adjust your state tax withholding too! Everyone's talking about federal taxes but you might have state tax issues as well. Check if your state taxes are being properly withheld - some employers that mess up federal withholding also mess up state withholding.

This is definitely fixable! I went through something similar when my employer incorrectly processed my W-4 as "exempt" - turned out someone in payroll misread my handwriting during data entry. Here's what I'd recommend doing immediately: 1. **Document everything** - Take screenshots or photos of all your paystubs showing $0 federal withholding. You'll need this evidence when talking to HR and potentially the IRS. 2. **Meet with HR/Payroll ASAP** - Bring your paystubs and a copy of your original W-4 if you have it. Ask them to show you exactly how your withholding information is entered in their system. 3. **File a new W-4 immediately** - Even if they say they'll "fix it," submit a brand new W-4 to ensure there's a clear paper trail. Consider adding extra withholding on line 4(c) to help catch up. 4. **Calculate your shortfall** - For $62k salary, you're probably looking at around $800-900 per month in federal taxes that should have been withheld. So roughly $4,800-5,400 for 6 months. 5. **Make estimated payments** - Don't wait for your employer to catch up. Make quarterly estimated payments through IRS Direct Pay to avoid underpayment penalties. The silver lining is you caught this in April, so you have 8+ months to correct course before tax season. Act fast and you should be able to avoid any penalties!