I just received my first paycheck for a new job as a college adjunct instructor, and I'm a bit confused by the tax section of the pay stub. Yes, money is set aside under Social Security and Medicare--but no money is listed for Federal Withholding. Why wouldn't money be withheld for federal taxes? And does that mean I need to be setting aside money for taxes myself?
My first thought was that maybe I misunderstood the terms of employment and that this is actually freelance work (for which I would be responsible for the taxes)--but I've checked, and it is an actual employee position for which I am expecting to receive a W2 (not a 1099MISC, like I would expect for my other freelance work).
Context: My primary employment is as a public school teacher. I also do some freelance tutoring under a sole proprietorship business license--I handle the Self-Employment Taxes on that myself. This adjunct position is a small side gig.
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Ask your employer or HR dept. You might not be making enough on each paycheck to have withholding taken out. They did reduce the withholding tables to give you more back in your paychecks but then you get a less refund (or owe) on your tax return.
You can increase your quarterly estimated payments to cover it. Or have more withheld on your other W2 job.
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