If my W4 is filled out correctly, how could I have a $25 underpayment penalty?

[garlaramo]

I am married filed jointly with 4 dependents and my W4 reflects as such. This is my only W2, only source of income spouse does not work.

[ee-ea]

Payroll took the wrong  amount for  withholding.

[Carl]

Assuming this is for your 2023 tax return, several possibilities

1) Payroll took out the wrong amount from your paychecks.

2) You filled out the W-4 wrong. (Happens often, as the instructions are not really as clear as they could be)

3) You recieved a lump sum amount of money for something where taxes were not withheld and you did not pay estimated taxes. For example, if you received a bonus, or have income reported to you on a 1099-MISC or 1099-NEC and it doesn't show any taxes withheld, or if you sold something such as a house or a car, for a large amount of money and did not pay estimated taxes on that income.

[garlaramo]

My W4 is correct, they are not complicated to fill out. Married filed jointly, 4 dependents under 17 so 8,000. Spouse doesn’t work, this is my only income W2. No bonus or other income or sum that didn’t have taxes taken out so I see that my employer didn’t take out the correct amount of taxes so my real question at this point is who should be responsible? If the employee screwed up shouldn’t they pay the penalty? How does that work with the IRS? 

[garlaramo]

So are they responsible for paying the penalty? 

[Carl]

unfortunately, no.