Question about Not withholding taxes

[cicy33]

Here are the problems with getting your employer to not take out taxes. Speaking as a business owner. and I am also an employee at a "real" job. If your employer did not withhold taxes at all you become a contractor or sub contractor. While it does not effect his tax liability as far as paying in taxes (as long as he gives you a 1099) it does seriously affect his insurance premiums on workers comp. To explain that further, if you decided to take a job as a sub contractor you would have to purchase liability insurance with workers comp for your employer to be able to deduct it from his insurance liability. We are required to have this and do. As suggested you can try to have as many deductions as legally possible so less is taken out and save it but that is your only option. I don't know very many employers that will go this route. A side note to the comment on people preferring to receive a refund. That would be me! I am terrible at saving. I am much better at getting the refund at the tax time all at once and use it for what ever purpose it needs to be used. While I do understand that idea of giving the irs a tax free loan I don't think everyone is good at saving. I think that instead of basically making me feel like I am being called dumb for doing it I should be congratulated that I am aware of my problem and have achieved a solution that is working for me. I do have some money taken from my check every pay period and put in savings. But I am the first to step up and say I am TERRIBLE at saving. I wish I was better but I'm not. And it is so easy to say just save! but that is like saying, just lose 10 pounds! (and yes, I could do about 5 times that, as well!) Not everyone is good at everything. So for me that refund is a lovely surprise that I get to use for whatever purpose I choose with no interest penalty to pay the next year. And by no means am I saying that those that can save are wrong or whatever, I really wish I could do it. I think those that can save like that are to be commended. I am trying and have started small.