W. Va. Code R. § 110-21-76

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-21-76 - Employer's Failure To Withhold

76.1. General. - If an employer fails to deduct and withhold tax as required, and thereafter the income tax against which such tax may be credited is paid by the employee, the tax required to be deducted and withheld shall not be collected from the employer. Where this situation occurs, the employer shall not be relieved of liability for any penalties, additions to tax or interest otherwise applicable for failure to deduct and withhold.

76.1.1. Example. - An employer fails to deduct and withhold West Virginia income tax from an employee's wages (on whose wages he is required to withhold). Thereafter, the employee files his West Virginia Personal Income Tax Return and pays the income tax shown on the return to be due. Since the tax was paid by the employee, the Tax Commissioner is precluded from collecting the tax from the employer who should have withheld from the employee. This payment of tax, however, does not relieve the employer from any penalties, additions to tax or interest in respect to his failure to withhold.

76.1.1.1. In the event that an employer provides an employee with a wage withholding tax statement but has not actually deducted and withheld personal income tax from the wages of the employee, the employer remains liable for the payment of withholding taxes if a credit against personal income tax is claimed by the employee on his income tax return based on the employer provided withholding tax statement.

W. Va. Code R. § 110-21-76