I have a math problem (taxes)

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meadowrue
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I have a math problem (taxes)

Post by meadowrue »

I took the advice here to dive deeper into my taxes to try to figure out how to get a smaller refund next year. I have run online tax calculators, studied my paystub, etc. and I understand more than I did a month ago.

That said, I am absolutely stumped as to why my tax withholding on my paycheck went DOWN after I got a raise this year? My W-4 stayed the same. Only change is that I increased my 401K contribution by 1%. That will max it out by the end of the year. But we’re talking about a $50 difference in 401K contribution. And my withholding went DOWN by over $200. I assumed with a raise, withholding would go up because proportionally I’d owe more tax.

Any ideas? Could this be tied to receiving a bonus and getting taxed super high on that? Is payroll offsetting the higher-than-normal tax on my bonus by under-withholding across my remaining paychecks for the year?

I know I can adjust my W4 and ask for more tax to be withheld, but I would like to understand why my payroll dept reduced my tax withholding after I got a raise, without any changes to my W4. This makes no sense to me.

Thanks for the help!
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livesoft
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Re: I have a math problem (taxes)

Post by livesoft »

Did/will your standard deduction change?
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

livesoft wrote: Sun Mar 31, 2024 9:15 am Did/will your standard deduction change?
Livesoft, would you mind explaining this? Sorry, still learning!
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

livesoft wrote: Sun Mar 31, 2024 9:15 am Did/will your standard deduction change?
If you mean family status change, no. Everything is the same, except I got a small raise ($5K) and a bonus.
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Silk McCue
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Re: I have a math problem (taxes)

Post by Silk McCue »

The tax brackets are wider (somewhere around 5% as best I can remember) this year for one thing so more money is taxed in each bracket. The standard deduction is larger as well.

Cheers
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

Silk McCue wrote: Sun Mar 31, 2024 9:20 am The tax brackets are wider (somewhere around 5% as best I can remember) this year for one thing so more money is taxed in each bracket. The standard deduction is larger as well.

Cheers
Thanks! What is odd is that my first couple checks in 2024, which would have been subject to new tax brackets/standard deduction, had Fed withholding around $530 per pay period. Then I got a raise, and Fed withholding went down to around $330 per pay period after the raise and after my bonus was paid (and taxed heavily, around 40%). So whatever the 2024 rules are, I don’t know why withholding adjusted DOWN after my raise + bonus. The only change is a higher contribution to my 401K, but I was close to maxing out already, and now I’m maxing out, so not a huge difference.
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Re: I have a math problem (taxes)

Post by retired@50 »

meadowrue wrote: Sun Mar 31, 2024 9:26 am
Silk McCue wrote: Sun Mar 31, 2024 9:20 am The tax brackets are wider (somewhere around 5% as best I can remember) this year for one thing so more money is taxed in each bracket. The standard deduction is larger as well.

Cheers
Thanks! What is odd is that my first couple checks in 2024, which would have been subject to new tax brackets/standard deduction, had Fed withholding around $530 per pay period. Then I got a raise, and Fed withholding went down to around $330 per pay period after the raise and after my bonus was paid (and taxed heavily, around 40%). So whatever the 2024 rules are, I don’t know why withholding adjusted DOWN after my raise + bonus. The only change is a higher contribution to my 401K, but I was close to maxing out already, and now I’m maxing out, so not a huge difference.
Check with someone in payroll. A $200 difference seems off to me.

I was under the impression the IRS has some sort of guidebook for payroll clerks so they could calculate the proper withholding for each employee, but all of this "logic" is probably now encapsulated in a payroll software program. Maybe the payroll software was updated to a new version?

Regards,
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Re: I have a math problem (taxes)

Post by meadowrue »

retired@50 wrote: Sun Mar 31, 2024 9:30 am
meadowrue wrote: Sun Mar 31, 2024 9:26 am
Silk McCue wrote: Sun Mar 31, 2024 9:20 am The tax brackets are wider (somewhere around 5% as best I can remember) this year for one thing so more money is taxed in each bracket. The standard deduction is larger as well.

Cheers
Thanks! What is odd is that my first couple checks in 2024, which would have been subject to new tax brackets/standard deduction, had Fed withholding around $530 per pay period. Then I got a raise, and Fed withholding went down to around $330 per pay period after the raise and after my bonus was paid (and taxed heavily, around 40%). So whatever the 2024 rules are, I don’t know why withholding adjusted DOWN after my raise + bonus. The only change is a higher contribution to my 401K, but I was close to maxing out already, and now I’m maxing out, so not a huge difference.
Check with someone in payroll. A $200 difference seems off to me.

I was under the impression the IRS has some sort of guidebook for payroll clerks so they could calculate the proper withholding for each employee, but all of this "logic" is probably now encapsulated in a payroll software program. Maybe the payroll software was updated to a new version?

Regards,
Ok, thanks. I will check on Monday. It makes no sense to me but maybe they have a logical explanation. On the plus side, our refund was very large this year so we have a margin for error but this is really confounding me. More money usually means more taxes!
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Re: I have a math problem (taxes)

Post by dodecahedron »

Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
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Re: I have a math problem (taxes)

Post by meadowrue »

dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
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catlady
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Re: I have a math problem (taxes)

Post by catlady »

Did you submit a new w-4?
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Re: I have a math problem (taxes)

Post by meadowrue »

catlady wrote: Sun Mar 31, 2024 9:47 am Did you submit a new w-4?
No, my W-4 is the same.
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dodecahedron
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Re: I have a math problem (taxes)

Post by dodecahedron »

meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus is normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
Last edited by dodecahedron on Sun Mar 31, 2024 10:02 am, edited 2 times in total.
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Re: I have a math problem (taxes)

Post by meadowrue »

dodecahedron wrote: Sun Mar 31, 2024 9:58 am
meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus sis normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
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Re: I have a math problem (taxes)

Post by peteyboy »

dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
+1

The amount of Fed withholding (for income tax) is set by the IRS. The employer is required to withhold a specific amount based on pay amount, pay type (ie bonus vs salary), frequency of pay, and what you have indicated on your W-4. The employer has no latitude or flexibility to change this. For more info see: https://www.irs.gov/payments/tax-withholding
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Re: I have a math problem (taxes)

Post by dodecahedron »

meadowrue wrote: Sun Mar 31, 2024 10:00 am
dodecahedron wrote: Sun Mar 31, 2024 9:58 am
meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus sis normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
You don’t have to confront them and accuse them of error, just say you are trying to understand how withholding works so you can wind up with an amount that will keep your tax return roughly balanced and manageable next year. You can just ask them what they have listed as your current w4 settings.

My employer offers a handy little sandbox app in our HR portal that allows us to play around with our fed and state withholding settings to see how that would affect deductions and takehome pay. Maybe encourage yours to do the same?
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Re: I have a math problem (taxes)

Post by meadowrue »

peteyboy wrote: Sun Mar 31, 2024 10:01 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
+1

The amount of Fed withholding (for income tax) is set by the IRS. The employer is required to withhold a specific amount based on pay amount, pay type (ie bonus vs salary), frequency of pay, and what you have indicated on your W-4. The employer has no latitude or flexibility to change this. For more info see: https://www.irs.gov/payments/tax-withholding
Yes, but my raise didn’t bump me close to $168,000 and my W-4 didn’t change. So that’s why I’m confused by my reduced withholding after my pay amount went up due to my raise. Shouldn’t my withholding gone up, proportionate to my raise?
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EricGold
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Re: I have a math problem (taxes)

Post by EricGold »

I like the idea of the SD and updated tax brackets explaining the drop in withholding. Perhaps it just took your company a couple of months to update stuff. And when they *do* update, they might be clever and correct for the excess witholding for the first couple months of the year

You might also be seeing the effects of legislated changes to dependent tax credits if that is part of a standard W-4

---
I think the better question though is whether the witholding is reasonable
Last edited by EricGold on Sun Mar 31, 2024 10:26 am, edited 1 time in total.
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Re: I have a math problem (taxes)

Post by celia »

meadowrue wrote: Sun Mar 31, 2024 10:00 am That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
It is not rude to ask a question. They are there to answer payroll questions. Usually they are very knowledgable and if they made an error, they would rather fix it now than at the end of the year.

Take a pay stub from last year and a current one as an example.

If you find out they have someone new who doesn't understand your question, ask them who would know or ask whomever you work under.
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Re: I have a math problem (taxes)

Post by peteyboy »

meadowrue wrote: Sun Mar 31, 2024 10:16 am
peteyboy wrote: Sun Mar 31, 2024 10:01 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
+1

The amount of Fed withholding (for income tax) is set by the IRS. The employer is required to withhold a specific amount based on pay amount, pay type (ie bonus vs salary), frequency of pay, and what you have indicated on your W-4. The employer has no latitude or flexibility to change this. For more info see: https://www.irs.gov/payments/tax-withholding
Yes, but my raise didn’t bump me close to $168,000 and my W-4 didn’t change. So that’s why I’m confused by my reduced withholding after my pay amount went up due to my raise. Shouldn’t my withholding gone up, proportionate to my raise?
Perhaps, but you may want to use the IRS info/website to calculate your withholding amount to compare.

https://apps.irs.gov/app/tax-withholding-estimator/

or

https://www.irs.gov/pub/irs-pdf/p15t.pdf - see pages 57-61 or 63-64, depending on the year of your most recent W-4. Check the W-4 form your employer has on file for you.

The latter is much easier to use.

If you get numbers that are very different contact your payroll department.
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Re: I have a math problem (taxes)

Post by FiveK »

meadowrue wrote: Sun Mar 31, 2024 9:43 am...I’m still claiming zero dependents, zero allowances, zero deductions.
The new Form W-4 doesn't have "allowances". See that link for details.
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Re: I have a math problem (taxes)

Post by meadowrue »

EricGold wrote: Sun Mar 31, 2024 10:19 am I like the idea of the SD and updated tax brackets explaining the drop in withholding. Perhaps it just took your company a couple of months to update stuff. And when they *do* update, they might be clever and correct for the excess witholding for the first couple months of the year

You might also be seeing the effects of legislated changes to dependent tax credits if that is part of a standard W-4

---
I think the better question though is whether the witholding is reasonable
Thanks. I am going to wait a month or two to see if anything changes again. There would still be time to course-correct. I used the IRS withholding calculator and according to that, I would still be due a small refund even if I leave things exactly as they are.
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Re: I have a math problem (taxes)

Post by lstone19 »

retired@50 wrote: Sun Mar 31, 2024 9:30 am I was under the impression the IRS has some sort of guidebook for payroll clerks so they could calculate the proper withholding for each employee, but all of this "logic" is probably now encapsulated in a payroll software program. Maybe the payroll software was updated to a new version?
It's all in Publication 15-T. I have a spreadsheet that for each of pay period (hours vary) calculates what the the pay stub should be. So far, federal withholding has always matched to the penny.
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

FiveK wrote: Sun Mar 31, 2024 12:09 pm
meadowrue wrote: Sun Mar 31, 2024 9:43 am...I’m still claiming zero dependents, zero allowances, zero deductions.
The new Form W-4 doesn't have "allowances". See that link for details.
Yep, sorry. I do know that. I listed zero dependents, zero deductions, MFJ. Basically, all zeros across the board so I have max tax withheld … though it’s not quite working that way! I have less tax withheld now than I had withheld last month with the exact same W-4 (that was pre raise).
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Re: I have a math problem (taxes)

Post by runninginvestor »

The most recent withholding guidelines were updated at the end of January

https://help.nfc.usda.gov/bulletins/202 ... axmap=true

You can use that to recreate what your holding should be based on your income and w4.

If your state is listed, you may be able to do it for that also.

https://help.nfc.usda.gov/systems/TAXES/index.php
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

runninginvestor wrote: Sun Mar 31, 2024 5:28 pm The most recent withholding guidelines were updated at the end of January

https://help.nfc.usda.gov/bulletins/202 ... axmap=true

You can use that to recreate what your holding should be based on your income and w4.

If your state is listed, you may be able to do it for that also.

https://help.nfc.usda.gov/systems/TAXES/index.php
Thank you!
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Re: I have a math problem (taxes)

Post by Billionaire »

One possibility is that a year-end patch to the payroll system was applied late. Typically, they would get applied (and tested) by the payroll department in conjunction with IT, prior to running the first payroll of the year.
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Re: I have a math problem (taxes)

Post by meadowrue »

Billionaire wrote: Sun Mar 31, 2024 6:04 pm One possibility is that a year-end patch to the payroll system was applied late. Typically, they would get applied (and tested) by the payroll department in conjunction with IT, prior to running the first payroll of the year.
Interesting, thank you.
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Re: I have a math problem (taxes)

Post by fulltilt »

meadowrue wrote: Sun Mar 31, 2024 10:00 am
dodecahedron wrote: Sun Mar 31, 2024 9:58 am
meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus sis normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
Absolutely appropriate.

When I have reached out to payroll, it has always been a positive experience.

Honestly, I think they liked the conversation because it gave them a chance to nerd out with someone about money which they were obviously very excited about.
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TravelforFun
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Re: I have a math problem (taxes)

Post by TravelforFun »

meadowrue wrote: Sun Mar 31, 2024 10:00 am
dodecahedron wrote: Sun Mar 31, 2024 9:58 am
meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus sis normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
Let us know what you found out.

TravelforFun
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meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

TravelforFun wrote: Mon Apr 01, 2024 11:28 am
meadowrue wrote: Sun Mar 31, 2024 10:00 am
dodecahedron wrote: Sun Mar 31, 2024 9:58 am
meadowrue wrote: Sun Mar 31, 2024 9:43 am
dodecahedron wrote: Sun Mar 31, 2024 9:37 am Have you hit the SS max wages (168,600j in year to date earnings for 2024? If so your SS withholding has dropped down to zero for remainder of the year. That can happen surprisingly early in the year for folks who get bonus pay as a lump early in the tax year.
Good thought, but no. I’m not there yet. My SS withholding is the same. Only Fed withholding has been reduced, even though I’m still claiming zero dependents, zero allowances, zero deductions. In other words, I’m asking for the max to be withheld, same as I did pre-raise, but now they’ve reduced the withholding for some reason I can’t understand. Could it be tied to my bonus being taxed so high? Are they offsetting that with smaller withholding through the rest of the year? That seems weird to me but I’m grasping at straws!!
Bonus sis normally taxed at standalone straight 22% rate, regardless of regular income formulas. It should not affect ongoing withholding on your regular salary. My best guess is that HR accidentally reset your w-4 when they entered the info for your raise.
That seems like the only logical explanation. Is it appropriate to contact payroll to ask? I have never done that and don’t want to seem rude in any way by questioning what they’re doing.
Let us know what you found out.

TravelforFun
I will. Going to reach out today and ask, politely, if Payroll can explain the equation to me.
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Re: I have a math problem (taxes)

Post by murrays »

lstone19 wrote: Sun Mar 31, 2024 3:13 pm
retired@50 wrote: Sun Mar 31, 2024 9:30 am I was under the impression the IRS has some sort of guidebook for payroll clerks so they could calculate the proper withholding for each employee, but all of this "logic" is probably now encapsulated in a payroll software program. Maybe the payroll software was updated to a new version?
It's all in Publication 15-T. I have a spreadsheet that for each of pay period (hours vary) calculates what the the pay stub should be. So far, federal withholding has always matched to the penny.
I totally agree, the withholding estimators are garbage IMHO and Pub 15-T is the bible.
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Re: I have a math problem (taxes)

Post by greg24 »

runninginvestor wrote: Sun Mar 31, 2024 5:28 pm The most recent withholding guidelines were updated at the end of January

https://help.nfc.usda.gov/bulletins/202 ... axmap=true

You can use that to recreate what your holding should be based on your income and w4.

If your state is listed, you may be able to do it for that also.

https://help.nfc.usda.gov/systems/TAXES/index.php
Our state was impacted by W-4 changes. My large employer automatically enacted W-4 changes for employees on the March 2 paycheck. Maybe the OP's employer made a similar change that impacted their withholding.
Topic Author
meadowrue
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Re: I have a math problem (taxes)

Post by meadowrue »

UPDATE: This was my own error! According to Payroll, when I updated my W-4 recently (I claimed a dependent to try to reduce withholding, then realized that went too far and reverted back) I also unchecked the box under Step 2 for Multiple Jobs, which had originally been checked. This further reduced my withholding.

Payroll has been helpful, though can’t offer tax advice of course. If I know how much Fed tax I want withheld, they can help with calculations … but honestly, I don’t know exactly how much I want withheld. I’m trying for a Goldilocks scenario but it’s impossible because DH makes highly variable income. I think I will keep doing what I’ve always done and err on the side of over-withholding, and then get a refund. I’m too much of a scaredy cat to risk under-withholding.

Thanks for all the suggestions here! I have learned way more about taxes than I knew a year or two ago.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
lstone19
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Location: Nevada

Re: I have a math problem (taxes)

Post by lstone19 »

meadowrue wrote: Tue Apr 02, 2024 9:34 am I have learned way more about taxes than I knew a year or two ago.
And that is a good thing!
Silk McCue
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Re: I have a math problem (taxes)

Post by Silk McCue »

meadowrue wrote: Tue Apr 02, 2024 9:34 am I think I will keep doing what I’ve always done and err on the side of over-withholding, and then get a refund. I’m too much of a scaredy cat to risk under-withholding.
You can still be safe and not overpay. We used to review YTD in Oct and implement adjustments to tweak the amounts withheld if/as needed.

Cheers
Topic Author
meadowrue
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Joined: Wed May 04, 2022 3:55 pm

Re: I have a math problem (taxes)

Post by meadowrue »

Silk McCue wrote: Tue Apr 02, 2024 9:46 am
meadowrue wrote: Tue Apr 02, 2024 9:34 am I think I will keep doing what I’ve always done and err on the side of over-withholding, and then get a refund. I’m too much of a scaredy cat to risk under-withholding.
You can still be safe and not overpay. We used to review YTD in Oct and implement adjustments to tweak the amounts withheld if/as needed.

Cheers
That’s a great idea! I assume Payroll doesn’t care how often you adjust your W-4? I worry about annoying them (but that’s my nature :wink: )
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
retire2022
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Re: I have a math problem (taxes)

Post by retire2022 »

meadowrue wrote: Tue Apr 02, 2024 9:48 am
Since no one referenced IRS publication 17, here is the link to the bible in case you are interested: https://www.irs.gov/pub/irs-pdf/p17.pdf
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