State tax filing

It means that your federal tax was withheld at a rate lower that 6.2% (which is what Social Security is withheld at).

Your federal tax was withheld at a rate of 4.54%.

It probably isn't an error:  depending on how frequently you were paid and how big your paychecks were, the withholding was probably calculated correctly.

Employers use Circular E to figure out how much to take out of each check for federal based on your filing status, which is why you filled out a W-4.

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