topic Can my employer retroactively deduct federal taxes after submitting an updated W-4? in Deductions & credits

Can my employer retroactively deduct federal taxes after submitting an updated W-4?

milkywayrat12 — Fri, 06 Feb 2026 19:16:38 GMT

I submit a changed W-4 to my employer to include additional withholdings. On today's paycheck, they withheld 3x that amount in additional withholdings. Their reasoning is that since I submit the change the same day as my last paycheck, " the system did retro entries for the taxes" (verbatim). How is that possible? I asked for clarification since I know retro deductions are not supposed to be allowed, and was advised that Federal is always prorated. They acknowledged that there is nowhere for me to see that information to have known it would happen. Are they allowed to do that? Where can I get more information on how changed W-4 works for deductions once applied? Nothing discusses retroactive deductions clearly.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

VolvoGirl — Fri, 06 Feb 2026 19:22:06 GMT

Gee, I guess it could be ok since it's in the same year. A lot of times people ask how to have more withholding taken out for prior paychecks on their W2, which is not possible.

Did you get a bigger gross paycheck? Like for a bonus or something? Then they would use a different withholding table.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

AmyC — Fri, 06 Feb 2026 19:24:51 GMT

About Publication 15 (Circular E), Employer's Tax Guide states here: When you receive a new Form W-4 from an employee, don’t adjust withholding for pay periods before the effective date of the new form. If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. For exceptions, see Exemption from federal income tax withholding, IRS review of requested Forms W-4, and Invalid Forms W-4, later in this section.

Show this to your employer. The problem could be you gave it to them on a pay date so it was effective.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

milkywayrat12 — Fri, 06 Feb 2026 19:29:40 GMT

I got $23 more for some OT pay. They even showed me a breakdown and it shows they withheld it 3 times.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

AmyC — Fri, 06 Feb 2026 19:35:11 GMT

Based on above - they could deduct for the last paycheck (date submitted) plus future paychecks. If they went back farther, then you may want to talk to them or let it go since it gives you a little boost for taxes withheld. You can always change the w4 again during the year. You can change it as many times as you want.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

milkywayrat12 — Fri, 06 Feb 2026 19:39:46 GMT

It seems there is an issue with policy and communication within my company. They have disregarded any statements with proof from the IRS site (I had actually already provided them that section and link for reference). Their response maintains that they did it and that they will just make sure that there is something in the future on the electronic form that states it will retroactively deduct the taxes. I am just having a hard time grasping onto that because it goes against the IRS rules and now leaves me unable to pay my bills this week.

thanks for the help.

Re: Can my employer retroactively deduct federal taxes after submitting an updated W-4?

AmyC — Fri, 06 Feb 2026 19:46:30 GMT

That is so frustrating. Best wishes