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My employer doesn't take enough out for taxes

Anonymous
Posted by Anonymous
  • 45 Replies
She did not tell us this so no one was prepared. Even claiming 0, I still owe the irs about $4,000. The other employees are in the same boat. How much extra should I opt to pay into the irs every two weeks to at least break even for 2016?

Edit: here are the specifics.

My salary is $38,000 a year, I consistently take home $1,286 every two weeks. I have received NO bonuses or overtime.

According to the w2, my income was $39,962 (this is incorrect). Federal was $972. Social security was $2,478. Medicare was $579. And state (NE) was $734.

I owe federal about $4,000. I have not submitter my return yet.
Posted by Anonymous on Feb. 6, 2016 at 5:59 AM
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Replies (1-10):
Anonymous
by Anonymous 2 on Feb. 6, 2016 at 6:03 AM

Nobody can tell you how much to take out of your paycheck, that is up to the individual. It's up to you to figure out what is best for you.

anchorgurl
by Bronze Member on Feb. 6, 2016 at 6:05 AM

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.

Anonymous
by Anonymous 3 on Feb. 6, 2016 at 6:06 AM
1 mom liked this
You probably will make the same amount? Or close? $150-$200 every two weeks from last year's checks would've covered the $4000 you owe now. So I'd have somewhere around that amount deducted. Unless she plans on doing it right.
How does that work anyways? I thought it was a pretty standard thing so I would find it odd and employer could fuck that up.
Anonymous
by Anonymous 3 on Feb. 6, 2016 at 6:08 AM
See that's how I thought it worked. You fill out the w4 and taxes are generated off that. It's a percentage so how is this wrong? Something is off here.

Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.

tired_momof3
by Silver Member on Feb. 6, 2016 at 6:12 AM
Depends, which kind? State witholding? Federal? Im assuming she's only referring to income tax withholding and not FICA or Medicare. If you owe an additional 4k, then divide 4000/over the number of pay periods (12 for monthly, 24 for semimonthly, 26 for biweekly). That should get you close but only for federal. Repeat the same process for state.
anchorgurl
by Bronze Member on Feb. 6, 2016 at 6:16 AM

The IRS has an online withholding calculator--I would double check her math there.  The calculator will also tell you how much additional you might ask to have deducted.

If she is under-withholding based on your W-4, that's a different story.  She might be holding back on her payments to the federal government to give herself more working capital.  Unfortunately...that's a felony.

Quoting Anonymous 3: See that's how I thought it worked. You fill out the w4 and taxes are generated off that. It's a percentage so how is this wrong? Something is off here.
Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.


Anonymous
by Anonymous 4 on Feb. 6, 2016 at 6:17 AM

This.  And it's pretty simple math to figure out that you need to withhold an additional $4000 over the course of 25 checks.  4000 divided by 25 is 160.  $160 per check or $80 per week.

Double check that you have 0 exemptions on your W-4.  And think about what other factors may be impacting your tax burden for the year.

Just out of curiosity, how much is you gross income for the year and how much did they withhold for federal (assuming that it's federal that you owe).

Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.


Anonymous
by Anonymous 4 on Feb. 6, 2016 at 6:19 AM

This.  It's a pretty straightforward thing, based on your W-4.  That's why I asked about your net and how much was withheld.

Quoting anchorgurl:

The IRS has an online withholding calculator--I would double check her math there.  The calculator will also tell you how much additional you might ask to have deducted.

If she is under-withholding based on your W-4, that's a different story.  She might be holding back on her payments to the federal government to give herself more working capital.  Unfortunately...that's a felony.

Quoting Anonymous 3: See that's how I thought it worked. You fill out the w4 and taxes are generated off that. It's a percentage so how is this wrong? Something is off here.
Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.


Anonymous
by Anonymous 1 - Original Poster on Feb. 6, 2016 at 6:29 AM
Well my salary is 38,000 a year. Though on the w4 she stated I made 40,000 (which is incorrect). She only withheld $4,550 for the year all together.

Quoting Anonymous 4:

This.  It's a pretty straightforward thing, based on your W-4.  That's why I asked about your net and how much was withheld.

Quoting anchorgurl:

The IRS has an online withholding calculator--I would double check her math there.  The calculator will also tell you how much additional you might ask to have deducted.

If she is under-withholding based on your W-4, that's a different story.  She might be holding back on her payments to the federal government to give herself more working capital.  Unfortunately...that's a felony.

Quoting Anonymous 3: See that's how I thought it worked. You fill out the w4 and taxes are generated off that. It's a percentage so how is this wrong? Something is off here.

Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.

Anonymous
by Anonymous 5 on Feb. 6, 2016 at 6:34 AM
Are you salary? If not you might have made 40,000. Little bit of overtime here and there or a bonus

Quoting Anonymous 1: Well my salary is 38,000 a year. Though on the w4 she stated I made 40,000 (which is incorrect). She only withheld $4,550 for the year all together.

Quoting Anonymous 4:

This.  It's a pretty straightforward thing, based on your W-4.  That's why I asked about your net and how much was withheld.

Quoting anchorgurl:

The IRS has an online withholding calculator--I would double check her math there.  The calculator will also tell you how much additional you might ask to have deducted.

If she is under-withholding based on your W-4, that's a different story.  She might be holding back on her payments to the federal government to give herself more working capital.  Unfortunately...that's a felony.

Quoting Anonymous 3: See that's how I thought it worked. You fill out the w4 and taxes are generated off that. It's a percentage so how is this wrong? Something is off here.

Quoting anchorgurl:

She is taking out what is required by law, based on the number of exemptions you are claiming.    If it is still not enough, you need to identify how much extra withholding you need taken out each pay.

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