Federal tax

[Mattzaki]

Hi! So back in October I started a new job which was in a different state then I live in. I’m a PA resident but work in NJ. While working there I noticed how low I was being taxed and then learned the two states had a reciprocal agreement. But I had also been informed that I needed to sighn a form (Nj-165) so my employer can withhold my taxes for my state. 

when I did this I noticed I was being taxed a lot more . I was very surprised and compared different checks to see the difference. Before I signed the form to withhold my taxes for Pa. I noticed that some pay checks had very little to nothing taxed for the federal tax… and learned that sometimes they don’t if tax federal if you don’t make that much.. which I indeed made a lot so this confused me ! 

now after the PA withholding went into effect I noticed that my federal tax had increased by almost 2x more ! They tax me the same rate as my social and Medicare ! 

I’ve been trying to understand why this is and even after updating my w-4 form the federal did not go down at all! 
my question is how come before I signed this form .. my federal tax fluctuated and even taxed me very little bit now I’m getting taxed a lot more ? 

i had spoke with my payroll and they said there is nothing that I can do about this and that it will always be this high. 

[DavidD66]

Tax withholding is based on the information you fill out on your W-4 (federal) and the state withholding form.  If you want to change your withholding, you will need to change your W-4 and state tax form.  Both TurboTax and the IRS have Withholding Calculators that you can use to complete a new W-4.  

TurboTax - How do I update my 2022 withholdings and print a new W-4?

IRS - Tax Withholding Estimator

[Mattzaki]

But the thing is when the PA withholding took place my w-4 was still the same as when I got hired … it wasn't until after I saw the increase in my federal that I updated the w-4 and still had only very small difference. @DavidD66 

[Vanessa A]

You cannot fill out a form for the PA withholding to choose additional amounts to be withheld or exemptions or anything like you can the W4.

 PA is a flat tax rate state with no real deductions from income.  Your withholding is a flat 3.07% .  Most people do not get refunds in PA unless their income is low enough to qualify for the special tax forgiveness in PA.  

Your PA withholdings have nothing to do with your federal withholding.

Your social security withholdings should be 6.2% of your income up to $142,800

Your Medicare tax is 1.45% of your income.

You can find your federal tax rate by clicking here.