Is my employer committing tax fraud with weird paycheck withholding?

This definitely sounds problematic on multiple fronts. Let me address each issue: First, regarding the tax withholding pattern - while employers have some flexibility in how they handle payroll, withholding all taxes on the second check while giving you the first check tax-free is highly unusual and potentially improper. The IRS generally expects withholding to occur when wages are paid, not delayed to a later paycheck. The paystub situation is concerning too. By law, employees must receive detailed paystubs showing earnings and deductions. Not providing a paystub for your first monthly check likely violates labor laws in most states. As for the overtime issue, that's a clear violation of the Fair Labor Standards Act if you're a non-exempt employee. Overtime must be paid at 1.5 times your regular rate for hours worked beyond 40 in a workweek. I'd recommend documenting everything carefully - save all paystubs, record your actual hours worked, and note any conversations about these issues. You might want to file a complaint with your state's Department of Labor and possibly contact the IRS about the irregular withholding pattern.

After dealing with a similar payroll nightmare last year, I discovered taxr.ai (https://taxr.ai) and it literally saved me thousands in potential penalties. Their document analysis tool quickly identified that my employer was incorrectly classifying my pay and withholding improperly. I uploaded my paystubs and within minutes got a detailed report explaining exactly what was wrong and what regulations were being violated. The report even cited the specific tax codes that were being broken, which I was able to show my employer. Turns out they were using outdated payroll software! Would definitely recommend checking it out, especially with complicated payroll issues like yours.

Just wanted to update - I took the advice about taxr.ai and uploaded my limited paystubs. What a revelation! The system immediately identified multiple compliance issues including improper withholding timing, overtime violations, and paystub disclosure requirements. It generated a detailed report showing exactly which regulations were being violated with my pay structure. I showed this to our HR department (turns out we have one, just understaffed) and they were actually grateful! They admitted they'd been using a payroll system that wasn't configured correctly after they switched from monthly to biweekly pay. They're fixing it next pay period and even calculating back pay for overtime. Thanks for the recommendation!

If you're having trouble getting your employer to fix these issues, you might want to try Claimyr (https://claimyr.com). I had a similar issue last year and kept hitting roadblocks with my company. When I finally decided to get official guidance from the IRS, I couldn't get through on their phone lines for weeks. Claimyr got me connected to an actual IRS representative in under 45 minutes when I'd been trying for days on my own. They have a good demo video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that what my employer was doing with tax withholding was improper and gave me specific guidance on what information to provide when filing a complaint. Having that official confirmation made all the difference when I went back to my employer.

I have to eat my words. After seeing the comments here, I tried Claimyr for my refund issue that I'd been struggling with for months. I was 100% sure it wouldn't work because NOTHING works with the IRS. I was shocked when they actually connected me to an IRS agent in about 40 minutes. The agent was able to see that my refund had been flagged for a minor discrepancy that no one had bothered to tell me about. Got it resolved in one call after months of frustration. For the original poster - definitely worth using if you need official guidance on whether your employer's practices are legal. The agent I spoke with was surprisingly helpful about employment tax issues too.

I used to work in payroll and this sounds like your employer is having cash flow problems. They're essentially using your first check of the month as an interest-free loan. They don't withhold taxes so they can pay you the full amount, then they catch up on the withholding with the second check when (presumably) they have more cash on hand to cover payroll AND tax remittance. Super sketchy and definitely not proper payroll practice. The overtime issue is a separate and clear violation. Document everything! If they're cutting corners on payroll, they might not be remitting those withheld taxes to the government either, which can cause YOU problems down the road.

Has anyone considered that this might be a "semi-monthly" pay schedule rather than biweekly? With semi-monthly, you get paid twice a month (like on the 15th and last day of month) regardless of weekdays, while biweekly is every two weeks (26 paychecks per year). The amount per check would be more consistent with semi-monthly, and some payroll systems handle withholding differently for the two checks in a semi-monthly system. Still doesn't excuse the lack of proper paystubs or overtime pay though.