Why Does My Employer Withhold So Much Tax From My Pay?

Your employer must withhold exactly the amount youcome with Form W-4 to calculate how many
tell him to - no more and no less. When you startedexemptions you should claim. It’s easier and
work, you filled out IRS Form W-4 and told yourmore accurate to use the online calculator on the IRS
employer whether you are married or single, and howWeb site. Don’t worry if you don’t know
many withholding allowances you wanted to claim.the answers to all the questions – just do the
You may have even asked them to withhold anbest you can. You can find the calculator on the IRS
additional dollar amount from each paycheck.website at [
The payroll department uses the federal taxIt’s also perfectly OK to adjust your Form W-4
withholding tables to calculate the amount of incomeby one or two allowances and see how it affects
tax to withhold from your pay based on theyour withholding when you get your next check with
information on your Form W-4, the amount of yourthe changes. Remember this rule: Fewer allowances
pay, and the time period covered. If you don'tmean more tax will be withheld. More allowances
remember what you entered on your Form W-4, askmean less tax will be withheld.
someone in your payroll department for a copy.File the form by giving it to your employer. You do not
If you usually get a tax refund, you should probablyhave to file it with the IRS.
adjust your Form W-4 so your employer withholdsMaking sure you are having the right amount of tax
less tax. You should also file a new Form W-4 if yourwithheld from your pay is one of the first important
circumstances have changed; for example, if you hadsteps to taking control of your money. Check your
a child, bought a house, or got married or divorced.withholding levels again at least once a year.
I don’t recommend using the instructions that