topic Can a payroll company change my income tax withholding without asking me? And can they use my paycheck to pay taxes beyond what is already taken out? in State tax filing

Can a payroll company change my income tax withholding without asking me? And can they use my paycheck to pay taxes beyond what is already taken out?

matthew3baez — Tue, 03 Feb 2026 07:00:10 GMT

I didn’t receive a direct deposit from my job for the last period, I found out that the payroll company (Gusto) changed my income tax withholding and used the entire paycheck to pay taxes with. Is this normal and how can I calculate if this is correct?

Re: Can a payroll company change my income tax withholding without asking me? And can they use my paycheck to pay taxes beyond what is already taken out?

Mike9241 — Tue, 07 Jan 2025 02:59:37 GMT

No it's not normal. Talk to them. Neither we nor the IRS can help. An attorney would probably cost more than it's worth.

Re: Can a payroll company change my income tax withholding without asking me? And can they use my paycheck to pay taxes beyond what is already taken out?

Hal_Al — Tue, 07 Jan 2025 13:16:44 GMT

It sounds like they did a year end adjustment to your withholding to make up for under withholding earlier in the year. What explanation is Gusto giving you?

Q. How can I calculate if this is correct?

A. From the tax tables.

Q. Can they use my paycheck to pay taxes beyond what is already taken out?

A. It's unusual, but maybe, depending on what taxes are involved (federal, state, local, FICA) and why there was under withholding earlier. You may have to wail until you file your returns to get any over withholding refunded. If excess FICA (social security and medicare) were withheld, you cannot get that refunded by filing a tax return. You have to get that from your employer/Gusto.