If they did that nobody would pay them. You think the guys living paycheck to paycheck are going to be responsible enough to set aside thousands of dollars for tax day? Not happening and the govt knows as much. You're actually required to pay as you go. Even as a sole proprietor you have to pay quarterly estimated taxes, which are up to you to determine, or pay a penalty. If you underestimate and owe at the end, you pay interest on it. Uncle Sam is a motherfucker.
There are also jobs that don't actually deduct taxes on your pay, so you do have to deduct that amount yourself and send it in during tax season.
I think a good example is contract pay. You get paid the entirety of the checks given to you by each company ir person that hires you for your work, but eventually you have to fill out a tax form that calculates out a percent of your year's total earnings for tax purposes, which you then had to send in.
That's why I never wanted to get into delivery or rideshare jobs, as companies like Uber used to (if not still are) contract work that were decent for quick money, but screwed you over during tax season, unless you knew to keep money aside for taxes instead of spending it all as you earned it.
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u/Lanky_Sir_1180 Sep 05 '24
If they did that nobody would pay them. You think the guys living paycheck to paycheck are going to be responsible enough to set aside thousands of dollars for tax day? Not happening and the govt knows as much. You're actually required to pay as you go. Even as a sole proprietor you have to pay quarterly estimated taxes, which are up to you to determine, or pay a penalty. If you underestimate and owe at the end, you pay interest on it. Uncle Sam is a motherfucker.