Am I required to collect unpaid taxes from employees?
In the event that an employee is undertaxed in a pay run, payroll administrators have two options:
- Request that the employee reimburse the company for the taxes that were not withheld from that paycheck. In Zenefits Payroll, the tax amount can be recovered through garnishments.
- "Forgive" the taxes. In this case, the amount that should have been paid as taxes is considered income to the employee. If this amount is greater than $600, you should issue a 1099 to the employee (much like you would for a contractor).
If you are using Zenefits Payroll and believe an employee was not taxed correctly, contact Zenefits Customer Care.
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