united-states tax-law
Can an employer owe money for an employee&#39;s income tax?
<p>In the USA, can an employer be held liable for their employee's federal income tax &ndash; specifically if the employer failed to inform employee of their responsibility to pay their own income taxes?</p>

<p>Let's say an employer reports a worker to the IRS as a contractor (1099), but fools the worker into thinking they are a full-time (W-2) employee.  Would there be a legal case to be had in holding the employer liable for that worker's federal income tax?</p>

<p>Yes, an employer who improperly classifies a person to whom they pay compensation as a contractor can be found liable by the IRS for the "employer's share" of FICA taxes (... as well as fines and other penalties: see <a href="https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee" rel="nofollow noreferrer">IRS guidance</a>).</p>

<p>But under current law the only way I can imagine an employer could be found liable <em>to the employee</em> for other taxes owed is through fraud or tort: E.g., the employer would have had to actively mislead or deceive the employee into believing it was withholding taxes or covering the employee's tax liability when in fact it was not.</p>

<p><strong>U.S. employers do not have a responsibility to educate employees or contractors about personal tax compliance.</strong></p>
