Will the employer be penalized by the IRS if the employee does not want to allow them to withold % of income for taxes?
No, the IRS gives no penalties as long as there is document proof that the employer offered a contract to withhold % of income
Will the employer be penalized by the IRS if the employee does not want to allow them to withold % of income for taxes?
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The employer will not be penalized by the IRS if the employee refuses to allow withholding of income for taxes, provided that the employer has documentation proving that they offered the option to withhold taxes. Employers must comply with tax laws, but if an employee chooses not to have taxes withheld after being given the opportunity, the responsibility falls on the employee to manage their tax obligations. It’s important for employers to keep clear records of these agreements. If you have any further questions, feel free to ask!