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W4 Witholdings for "Single"

10409000
Level 4

Hi has anyone else noticed that some W2s are taxed differently for federal? I have clients that do "Single" and dont claim any dependents or any adjustments and they have at least 10% or more taken out for federal and usually get a refund but then i see some W2s that people choose "Single" no dependents and federal tax % is less its around 8%. 

For ex I had someone who made 50,000 for ex and the witholdings for federal were 4,000 so i i asked did you do exempt or anything like that he said no so i made sure he did single 0 the whole year and the same thing.. same percentage is being deducted. 

Does anyone know what might be going on with the payroll companys formula of how much federal tax to take out? I kind of noticed a pattern that all ADP W2s are the lower percentage being taken for federal. I alsouse adps paycheck estimator its pretty cool it lets you calculate what the witholdings are ..in case you want to see or use it its very helpful here is the link https://www.adp.com/resources/tools/calculators/salary-paycheck-calculator.aspx or you can google "salary paycheck calculator ADP" 

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2 Comments 2
Just-Lisa-Now-
Level 15
Level 15

I think there are different tables if people are still using the old style W4s.

The new style W4s are designed to make you break even (within a few hundred bucks either direction), so your guy with 50k in earnings, 50k minus the standard deduction leaves him about 37k in income, that gives him a tax liability of approx 4200, so thats pretty close to his 4000 in withholdings, which means he didnt give the government free use of his money all year, he got it all in his paychecks..


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

They don't really use dependent adjustments any more.

Why not just go with safe harbor? That's what I do for everyone I help with, if they don't like how the W4 worksheet comes out.

And make sure they have, in fact, updated their W4. Life changes.

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