How do you verify that company is taking out right amount of taxes?

Parent Cafe
1

<p>DH just started a new job and I am questioning the amount of taxes being taken from his check. For various reasons, I think the company is taking out too much. (Yes, I know everyone thinks this). But how do we verify that they are taking the right amount based on the exemptions he has claimed?</p>

2

<p>See IRS publication 15 (<a href=“http://www.irs.gov/pub/irs-pdf/p15.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p15.pdf&lt;/a&gt;). They have tables starting page 38 of the publication that show how much should be taken out based on the number of exemptions, martial status, and frequency of pay.</p>

<p>I would be highly surprised if they are taking out more than they should based on the tables.</p>

3

<p>^ Thanks engineer! I checked the chart and in fact the amount they are taking out does not match. In fact, it’s off by quite a bit. I’m going to email this to my husband and have him check on it. You’ve been so helpful!</p>

4

<p>If they are taking out too much, you will get a tax refund next year. Your husband can also go and make a change on his withholding so that less is taken out.</p>

5

<p>follow the worksheet to complete a new W4</p>

<p><a href=“http://www.irs.gov/pub/irs-pdf/fw4.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/fw4.pdf&lt;/a&gt;&lt;/p&gt;

6

<p>There are also some online calculators. I have googled for these in the past to help my kids estimate how much their take home pay will be.</p>

<p>I use a payroll service for my employees and I think it’s pretty accurate. Your husband should with HR and ask about adjusting his W-4 to reflect what you think should be withheld.</p>

7

<p>The total withholding amt might include health insurance, dental, vision, life insurance, union dues, retirement and not just what is on the W4. Good to check into it all.</p>