Employer taking out taxes but not paying them? No paystubs or W-2 issued - am I responsible?

What you're describing sounds like potential tax fraud by your employer. This is actually more common than people realize, especially in small businesses. First, your employer is legally required to provide you with a W-2 by January 31st each year. When they fail to do this, it's a major red flag. The fact that you also don't receive paystubs is another serious concern. You can request a wage and income transcript from the IRS to see what (if anything) your employer has reported. Go to the IRS website and use the "Get Transcript" service, or call them directly. This will show you if any W-2s or 1099s have been filed under your SSN. If you discover your employer hasn't been remitting your withholdings, you should file Form 4852 (Substitute for W-2) with your tax return. You'll need to estimate your wages and withholdings as accurately as possible using your own records - bank deposits, any pay information you have, etc. The good news is the IRS generally doesn't penalize employees in this situation if you can show your employer withheld the taxes. The bad news is you might have to pay the taxes again and then try to recover them from your employer.

After going through a similar nightmare last year, I discovered taxr.ai (https://taxr.ai) and it was a complete game-changer. My situation was almost identical - boss withheld taxes but no paystubs, no W-2, and total radio silence when I started asking questions. The tool helped me piece together my actual tax situation from my bank deposits and the few random pay documents I had. It analyzed my irregular payment patterns and helped me create an accurate substitute W-2 that I could confidently file with the IRS. What surprised me was how it flagged certain patterns that indicated my employer was likely pocketing the withholdings. The document analysis feature was particularly helpful in my situation since I had such limited official paperwork to work with.

Just wanted to update after trying taxr.ai. I was super skeptical (as you can see from my previous comment), but it actually worked really well for my situation. I uploaded my bank statements showing regular deposits, some text messages with my boss mentioning tax withholding percentages, and even a photo of a handwritten note with my pay breakdown from when I first started. The system pieced together enough to create a substitute W-2 that looked reasonable. What really helped was the guidance on filling out Form 4852 correctly - I would have completely messed that up on my own. Been about 3 weeks since I filed using their documentation and so far no issues with the IRS. Still mad at my employer, but at least I'm not stuck in tax limbo anymore.

If your employer is pulling this kind of stunt, you should probably also report them directly to the IRS, but that creates another problem - actually getting through to someone at the IRS. I spent literally WEEKS trying to get a human on the phone when dealing with my own employer tax issues last year. I finally found Claimyr (https://claimyr.com) which got me through to an actual IRS agent in about 30 minutes after weeks of failed attempts. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to explain my situation to the agent, who confirmed my employer hadn't been filing proper payroll tax returns despite withholding from my checks. They took a report and started an investigation. This also protected me from penalties since I had officially reported the issue.

Well I need to eat some humble pie here. After posting my skeptical comment, I decided to try Claimyr anyway since I was desperate to talk to someone at the IRS about my missing W-2 situation. Not only did it work, but I got through to an agent in about 45 minutes without having to do anything. They called me when an agent was on the line, I explained my situation, and the agent confirmed my employer hadn't submitted ANY tax documents for me last year. They helped me file a complaint and gave me specific instructions for dealing with my tax return using Form 4852. The agent also told me they'd flag my account so I wouldn't face penalties for the situation since I was proactively reporting it. Honestly wish I'd known about this months ago instead of stressing about the October deadline!

Another option nobody mentioned is contacting your state's Department of Labor. What your employer is doing is likely wage theft and possibly tax fraud, both of which state labor departments take seriously. In my experience, they sometimes move faster than the IRS on these issues. When I reported my former employer for similar shenanigans, the state investigators contacted them within a week, and magically my W-2 appeared three days later. They'll also have records of unemployment insurance payments which can help verify if your employer is reporting your wages properly.

Keep in mind you can also check your Social Security earnings record online through ssa.gov. If your employer isn't properly reporting your income to the IRS, they're probably not reporting to Social Security either. This could affect your future benefits, so it's another reason to address this ASAP. I found out my employer hadn't been reporting my income for TWO YEARS and had to get it all corrected. The Social Security Administration can't directly help with your tax issue, but having documentation from them showing no reported earnings can be more evidence of your employer's wrongdoing.

This is a really tough situation, but you're not alone in dealing with this kind of employer misconduct. Based on what you've described, your employer is likely committing payroll tax fraud, which is unfortunately more common in small businesses than people realize. Here's what I'd recommend doing immediately: 1. **Document everything** - Start keeping detailed records of all your pay, hours worked, and any communication with your employer about taxes or withholdings. Even text messages or emails can be valuable evidence. 2. **Request your wage transcript from the IRS** - You can do this online through the IRS "Get Transcript" service. This will show you exactly what (if anything) your employer has reported under your Social Security number. 3. **File Form 4852** - If you discover your employer hasn't been properly reporting, you'll need to file this substitute W-2 form with your tax return. You'll estimate your wages and withholdings as accurately as possible using your own records. The good news is that the IRS typically doesn't penalize employees when employers fail to remit withheld taxes, especially if you can demonstrate that money was actually taken from your paychecks. However, you may initially have to pay the taxes and then work to recover them from your employer. Don't wait until the October deadline is breathing down your neck - start gathering your documentation now and consider reporting your employer to both the IRS and your state's Department of Labor. This protects you and helps prevent them from doing this to other employees.

I went through almost the exact same situation two years ago and it was absolutely terrifying at the time. My employer was withholding taxes but never provided paystubs, and when tax season came around, no W-2. I was panicking about the deadline and potential penalties. Here's what worked for me: I immediately requested my wage and income transcript from the IRS website (it's free and pretty straightforward). Sure enough, my employer had reported ZERO wages for me despite taking taxes out of every paycheck for months. I filed Form 4852 using my bank deposit records and a few text messages where my boss had mentioned my pay rate and tax withholdings. The IRS accepted it without any issues. What really helped was that I also filed a complaint with both the IRS and my state's Department of Labor at the same time. The state labor department moved incredibly fast - they contacted my employer within a week, and suddenly all my "missing" tax documents appeared. Turns out my employer had been pocketing the withheld taxes and hoping employees wouldn't notice or know how to fight back. Don't let this drag on until October. The sooner you act, the better your position will be. The IRS is generally understanding about these situations when you're proactive about reporting them. You've got more options and protection than you might think!