We have historically filed our taxes each year in October as HeavyL is self employed and the taxes taken out in my paycheck usually have left us not owing any fines or penalties. We do file the extension in April each year to avoid any penalties.
In the middle of 2012 she began working part time to help out as her business was hit particularily hard with the recession.
I was going over her W2 from 2012 and noticed that they took out state taxes and medicare/SS but they didn't take out any Federal.
I don't know enough about the laws but it is my understanding her employer could be fined for this.
For the CPA or tax attorney (or the well learned) members, what are my options?
I'm thinking about meeting with the CFO (a friend) and discussing this with him to have him update her W2 and amend their taxes from 2012 and report it but I don't know if this is the correct route or not.
I don't want to file with the W2 provided as that will mean I will have to pay the taxes which could drastically effect me this year. My quick numbers are I will owe a little over $3000 Federal.
On a separate note, she qualified for 401K enrollment in January but she didn't qualify for any other benefits (health, dental, etc.). Is it possible the 401K has a different number of hours that qualifies versus the number of hours for other benefits?
PS HeavyL is not happy with this part time job as she was promised a full time position beginning in August and she was looked over. I have no loyalty to my friend in this matter and we may be seeking legal advice.