Josh-Daniel S. Davis (joshdavis) wrote,
Josh-Daniel S. Davis
joshdavis

Insufficient Federal Withholdings

Our 2016 tax liability was about $400 less than for 2015.
I also set my W4 withholdings to 3 from 4 in March, 2016.
My company withheld $1300 less for 2016 than for 2015.
For the first time in 25 years, I OWE the IRS during tax reconciliation.

It looks like my utilization checks had

Our 2016 tax liability was about $400 less than for 2015.
I also set my W4 withholdings to 3 from 4 in March, 2016.
My company withheld $1300 less for 2016 than for 2015.
For the first time in 25 years, I OWE the IRS during tax reconciliation.

It looks like my utilization checks had insufficient (sometimes zero) federal withholding.
Also, through August 15, they withheld about 0.8% less than later in the year.
Also, I didn't have pre-tax savings in the first 3 months, but they only withheld an extra 0.25% for that.

I am quite irritated.
This is not something I should have to check every paycheck and compare.
If I wanted to do that, I would work for myself.

On the bright side, we HAVE money set aside for this sort of thing.
I went ahead and dropped W4 allowances to 2, but that doesn't really fix the problem.

http://omnitech.net/xaminmo/2017/04/02/insufficient-federal-withholdings/
Tags: employment, money, payroll, taxes
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