Realized my employer didn't withhold any federal taxes - what can I do?

This is unfortunately a common issue with fiscal intermediaries that handle payments for PCAs. First thing - don't panic! You have several options to address both the current tax situation and prevent this from happening again. For your current tax bill: Yes, you still owe the taxes even if they weren't withheld. However, if this creates a financial hardship, you can request a payment plan with the IRS when you file. The IRS offers reasonable monthly payment options, and the application process is straightforward. For future withholding: You can make estimated tax payments directly to the IRS using Form 1040-ES. This bypasses your employer completely. Make quarterly payments (April 15, June 15, September 15, and January 15) based on your expected income and tax rate. As for reporting the issue: Contact your state's Department of Labor, as employers are required to properly handle withholding requests. Also, reach out to the DSS program coordinator who oversees your case, as they can often intervene with the fiscal intermediary. Remember to keep documentation of all your W-4 submission attempts and communications with the intermediary - this will help if there are any questions about why you didn't have withholding.

I dealt with almost this exact situation when I was working as a home health aide! I found this amazing service called taxr.ai (https://taxr.ai) that saved me so much stress. After I uploaded my W-2 showing zero withholding, they analyzed my situation and helped me understand all my options. They showed me how to properly document that I had repeatedly requested withholding and still create a plan for dealing with the taxes I owed. The best part was they guided me through setting up those quarterly estimated payments so I wouldn't have the same problem again. They even created a custom withholding calculator based on my specific pay structure.

Just wanted to update after trying taxr.ai from the recommendation above. I was skeptical at first, but after dealing with my agency ignoring my withholding requests for months, I uploaded my documentation and got detailed advice within a day. They actually found a special form I could submit to the IRS documenting my withholding requests that my employer ignored, which helps avoid certain penalties! They also walked me through exactly how to calculate my quarterly payments based on my irregular PCA schedule. Definitely worth checking out if you're in this situation - wish I'd known about them months ago!

Something else to consider - if you're still struggling to get any response from your employer or the fiscal intermediary, I highly recommend using Claimyr (https://claimyr.com) to get through to the IRS directly. I spent WEEKS trying to get someone on the phone at the IRS to help with my situation where my employer wasn't withholding taxes. The automated system kept disconnecting me after waiting an hour. With Claimyr, I got a callback from an actual IRS agent within a few hours! They have a demo video here: https://youtu.be/_kiP6q8DX5c The agent was able to set up my quarterly payments and explained exactly what documentation I needed to prove I had requested withholding. They also told me who to contact at the state level to report the intermediary. Honestly changed my whole perspective on dealing with the IRS.

I have to admit I was completely wrong about Claimyr in my comment above. After continuing to struggle getting anyone at the IRS to help with my withholding issue, I decided to try it as a last resort. Within about 2 hours, I got a call connecting me to an actual IRS representative! The agent took time to understand my situation with the fiscal intermediary not withholding taxes and walked me through setting up estimated payments. They also documented in my file that I had attempted to get withholding set up multiple times. Even helped me calculate the right quarterly payment amounts based on my PCA work hours. Such a massive relief after months of stress and unanswered calls.

Just a heads up - I work for a similar fiscal intermediary in a different state, and this is sadly a common issue. These intermediaries often have terrible systems for managing W-4s for hundreds or thousands of PCAs. Some actionable advice: 1) Submit a new W-4 with "ADDITIONAL withholding" of a specific dollar amount rather than changing your filing status or deductions. This is harder for them to mess up. 2) Send it certified mail or with delivery confirmation so you have proof they received it. 3) Contact your case manager at DSS directly - they often have more leverage with the fiscal intermediary than you do as an individual. 4) Keep copies of EVERYTHING - all communications, all W-4 submissions, all paystubs. Good luck! Been there and it's frustrating but fixable.

You might want to look into whether you qualify as an independent contractor rather than an employee. Many PCAs are actually misclassified. If you're actually an independent contractor, you'd handle your own taxes through quarterly estimated payments anyway, and this might simplify things for you going forward. The IRS has a form called SS-8 that helps determine proper worker classification. Worth looking into since your intermediary is already failing at basic employer responsibilities!

I'm dealing with a similar situation right now and wanted to share what I've learned from calling the IRS directly. When your employer fails to withhold taxes despite proper W-4 submission, you can actually request what's called a "lock-in letter" from the IRS. This is a formal notice that the IRS sends to your employer specifying exactly how much must be withheld from your paychecks. To get this, call the IRS at 1-800-829-1040 and ask for the "employee protection" department. You'll need to provide documentation that you submitted proper W-4 forms and that your employer ignored them. The IRS takes this pretty seriously since employers are legally required to follow valid withholding instructions. Also, since you're working through DSS as a PCA, you might have additional protections under your state's labor laws. Many states have specific regulations about how fiscal intermediaries must handle payroll for state-funded positions. I'd recommend contacting your state's Department of Labor wage and hour division - they often have more teeth than just complaining to DSS directly. Keep fighting this! You shouldn't have to bear the burden of your employer's failure to follow basic tax laws.