When you get your paycheck in Pennsylvania, you will note that money has been taken from it to pay taxes. This is a legal requirement. Your employer must take these taxes from your pay unless you are an independent contractor. If your employer fails to take payroll taxes, it can cause trouble for your employer and you.
Few things are as terrifying as receiving a notice from the Internal Revenue Service alleging that you owe back and/or additional federal income taxes. If one of these notices arrives in your Pennsylvania mailbox, however, the first thing to remember is not to panic. You have options and you also have the right to due process.
As with any tax dispute, it is important to address any problem associated with filing or paying your Pennsylvania or Federal taxes after the deadline has passed. However, it is not always entirely clear what, if any, consequences will arise from procrastination.
You may run into a situation where an employer in Pennsylvania wants to classify you as an independent contractor. This means you will be responsible for paying all employment taxes. However, it also means more than that when it comes to the relationship between you and your employer.