I just found out someone that I was paying this quarter( never filed payroll returns) gave false documents. What is my best option to get this off the payroll returns and w-2. Can I and should I return to him the withholdings?
thanks
This could be a pretty sticky problem. I would highly recommend contacting your Accountant to see how to handle this unfortunate situation.
Accounting wise you can't deduct wages or taxes for an illegal employee. Anything illegal is non-deductible. You can file a corrected W-2 for that employee to zero out all the amounts.
