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Level 2
February 14, 2025
Question

How does the HR system ADP define the % federal tax to be withheld? In case the salary increases, is it possible that the taxes are not withheld properly?

  • February 14, 2025
  • 1 reply
  • 3 views
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    1 reply

    MaryK4
    Level 15
    February 14, 2025

    The payroll deductions are calculated using the IRS tables and any additional withholdings as indicated on the W4.  If your salary increases, the tax withholding is adjusted in their system based on what the projected year end amount would be.  It may be possible that withholding is incorrect, this most likely would occur if there was an entry error.  

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    lericardoAuthor
    Level 2
    February 14, 2025

    It seems that the system is withholding much less federal taxes than expected, and now I will need to pay at once during the taxes filing process. I guess that something might be wrong in ADP, and I don't know what.