Quote Originally Posted by aguynamedpat View Post
Yeah but they ACTUALLY paid him like $800 total, and the extra $172 was taken out in taxes. He brought home from the company a little over $800, but the company is reporting to the gov't that they only paid him $630... So while looking at their business logs, wouldnt this show them making more profit, thus them being taxed more as a business?
No, not if they didnt claim all their own business income. 800 income for him = more than 120 extra tax dollars for that employee plus the amount of all the other employees extra tax dollars. It could be a sizeable amount at the end of the year.