I’m waiting for payroll to explain this on Friday, but I just got my first paycheck and I’m panicking. I also work a part-time job to make ends meet, but after taxes, this job is barely paying $11 per hour. They taxed 33% of my paycheck, which seems way too high. If this keeps happening, I don’t know how I’ll manage.
The federal withholding on your check makes it look like:
- You’re being paid weekly (did you work 129.5 hours in one week?).
- Your W-4 has you marked as “Single” and checked the box for having multiple jobs in Step 2.
So, it’s calculating as if you’re making $2,201.50 every week for 52 weeks, which is about $114,478 annually. That’s also assuming you’re single and working two jobs.
Is this your first paycheck, and does it include hours from earlier weeks? How many hours do you actually expect to work weekly?
EDIT: Just saw the “memo” on your pay stub. It seems like this check is covering 6 weeks of work, but it was taxed as if it was for just one week.
@Zinn
Thanks for breaking it down. It’s a small workplace, and it took about a month to set me up in their payroll system. I’m supposed to be paid biweekly, and my contract says $21k per year. This check covered everything I’ve worked for the past month and a half.
@Clay
Got it. Sounds like they calculated the taxes wrong. The withholding should’ve been closer to $55, but they’d have to adjust it manually to fix it. You could leave it as is and get the extra back as a tax refund, or adjust your W-4 so this doesn’t keep happening. Depends on if you need the money now or can wait until tax season.
This is just withholding. If they took too much, you’ll get it back as a refund when you file your taxes.
Quin said:
This is just withholding. If they took too much, you’ll get it back as a refund when you file your taxes.
Small correction: it’s your employer who withholds the money and sends it to the IRS, not the IRS directly.
Quin said:
This is just withholding. If they took too much, you’ll get it back as a refund when you file your taxes.
Still, you’re giving the government an interest-free loan. It’s better to fix your W-4 now and stop overpaying.
Quin said:
This is just withholding. If they took too much, you’ll get it back as a refund when you file your taxes.
Let me rephrase it: they take your money, hold it for a year without interest, and you have to file taxes to get it back.
Welcome to adulting.
That money is going to Israel and Ukraine, apparently.
Your taxes are based on the W-4 you filled out and are calculated as if you’ll earn that amount for every paycheck all year long.
If too much is withheld, you’ll get the extra back as a refund. If not enough is withheld, you’ll owe when you file.
How often are you supposed to get paid? Weekly, biweekly, or monthly?
@Rowan
If you want less taken out, update your W-4. But be careful. If you don’t withhold enough, you might owe taxes and even a penalty later. At $17 per hour, adjusting to 10-12% should be fine.
Finn said:
@Rowan
If you want less taken out, update your W-4. But be careful. If you don’t withhold enough, you might owe taxes and even a penalty later. At $17 per hour, adjusting to 10-12% should be fine.
Does that mean if I owe anything when I file, there’s always a penalty? I thought you just paid what you owed.
Finn said:
@Sam
Usually, there’s no penalty if you owe less than $1,000. Here’s more info from the IRS.
Got it, thanks!
@Sam
I’ve had underpayment issues twice, both when one of us switched jobs and withholding was off. The highest was $7k, but we explained it to the IRS, and they didn’t penalize us.
Gotta fund those big NGO salaries somehow. Only 3% of it actually goes to what they claim to support.
This is a Wendy’s. Also, if you read the top comment, you’ll see this was a mistake by the employer.