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Too much withholding

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cenzo

Member
What is the name of your state? MA

I am an hourly employee and am paid every two weeks. I have elected to have an extra amount withheld from my pay every pay period for addional taxes. If I take one or more paid vacation days during the two week pay period I get two pay checks, one for days actually worked and one for the paid vacation day(s) however the vacation paycheck also has the extra wihholding taken out which drastically reduces the vacation paycheck. I realize the withholding money is in my account but would like to have only one extra amount withheld for a two week pay period. My HR dept. "does it their way" - can't make exceptions. Can they do this ?

Thank you for your assistance.
 


cbg

I'm a Northern Girl
They not only can, they must.

If you have elected to have x amount of extra withholding taken out of your check, then ALL your checks get that amount taken out. They can't take one amount out of your regular checks and a different amount out of vacation checks. They are required to take out the amount that YOU specified.

This is not a case of your HR department "doing it their way"; this is a case of them following the law.
 

pattytx

Senior Member
Cbg, I beg to differ. Cenzo should be getting one paycheck for his full pay for the period, which includes regular pay, vacation, sick, overtime, etc. Even if not, the tax withholding should be calculated the same as though it were one check (the aggregate method). Splitting the pay into multiple paychecks often causes each check to have withholding calculated at a lower marginal tax rate, where one check would the the higher marginal rate, which is what the IRS requires.

Unless, Cerzo, one further question? On the second check, are they calculating based on your W-4 Marital Status and exemptions plus the additional amount or at 25% plus the additional amount? The W-4 assumes when it says additional amount "each paycheck" that you are getting one check per pay period; and if not, it is because of supplemental wages that can properly be withheld at 25%.
 

cbg

I'm a Northern Girl
Sorry, Patty, I missed where this was for only one or two days of vacation; I was reading it as a check for, say, a week of vacation time. That being the case, I agree it should be one check. Although one check or two, I still don't believe they can ever deduct a different amount than he has on his W-4.

BTW, I don't know if it matters, but in Massachusetts, vacation time is considered wages.
 

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