Based on the screenshots that I see, you are correct in your assumption. You will need to withhold $205/-less from your paycheck than what you have currently. Also, please do verify with your HR department that this will get you to where you want to be in your withholdings.
Another way to reduce the withholdings is to claim more dependents on your W4 so they take out less taxes, The first way, you will have a more accurate number.
