Can entire paycheck be withheld for taxes? Is this legal for part-time workers?

My husband works as a bartender at a local restaurant on a part-time basis with fluctuating hours. He doesn't receive any benefits since he's hourly. During his most recent pay period, he only picked up a single shift, and I was shocked when he showed me his paystub - literally his ENTIRE paycheck was taken out for taxes! Nothing left for him! Is this even normal? Does it make sense that the amount they take out for taxes each paycheck is some fixed amount regardless of how many hours he actually worked? What happens in situations where he earns less than whatever amount they've calculated should be withheld? Will they take more out of his next paycheck to "catch up" so that his total withholding for the year matches some predetermined amount based on his W-4? Is there any way to fix this without claiming complete exemption from withholding? We still owe the IRS from last year and are on a payment plan, so I'm pretty sure we can't claim exemption since we have tax liability, right? It just seems crazy that he's basically working shifts for free sometimes and won't see that money until we file our taxes next spring. Any advice?

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17 comments

Isaac Wright

•8M

What you're seeing is likely the result of payroll systems calculating withholding on a per-paycheck basis rather than looking at the total annual picture. When your husband only works one shift, the system still applies the same withholding percentages, but against a much smaller amount. Tax withholding is generally calculated as if each paycheck represents what you'd make for an entire year at that rate. So if he normally makes $1,000 per pay period but only made $100 this time, the system might be calculating taxes as if he only makes $2,600 annually (assuming bi-weekly pay), which results in a much higher percentage being withheld. You're correct that you can't claim exemption while on an installment plan. However, you have options. Your husband can submit a new W-4 to his employer with higher allowances or additional dollar amounts specified in Step 3 to reduce withholding. The IRS has a Tax Withholding Estimator on their website that can help calculate appropriate adjustments.

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Isaac Wright

•8M

No, he wouldn't need to submit a new W-4 each time his hours change. The W-4 adjustments would be based on your anticipated annual income and tax situation. The goal is to set withholding that works correctly across the entire year, accounting for both higher and lower earning periods. For variable-hour workers, it's actually more important to look at the big picture. You might consider requesting a specific dollar amount of withholding rather than using the percentage method. Your husband could talk to his payroll department about this option, which might work better for inconsistent schedules.

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Tami Morgan

•8M

I went through something similar with my seasonal job. After trying to figure it out myself for months, I used https://taxr.ai to upload my paystubs and W-4, and they explained exactly what was happening with my withholding. Turns out my employer was using the wrong withholding table for my filing status. The tool analyzed my withholding patterns and showed me that I was getting overtaxed on small paychecks but undertaxed on larger ones. They even generated a customized W-4 form specifically for variable income workers like me. No more surprise zero-dollar paychecks!

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Tami Morgan

•8M

The service analyzes both your current withholding and helps you plan for future paychecks. You upload your paystubs and W-4, and it shows you exactly why you're being overtaxed during low-hour weeks and gives you specific adjustments to fix it. It's especially helpful for variable schedules like nursing shifts. Regarding security concerns, I was hesitant at first too. They use bank-level encryption and don't store your documents after analysis. You can also black out personal info like SSN before uploading. I researched them pretty thoroughly before using them - they're legit and actually helped me recover almost $900 in overwithholding.

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Haley Bennett

•8M

Just wanted to follow up - I decided to try that taxr.ai site after getting another zero-dollar paycheck last week. Not gonna lie, I was super skeptical, but it actually showed me exactly why my withholding was so messed up. My employer was using the wrong withholding calculation method for variable-hour employees. The site generated a new W-4 form that I gave to HR yesterday. They said it looks good and should fix the problem with my next paycheck. What convinced me was seeing the side-by-side comparison of how much would be withheld with different hourly totals. Really made it clear why I was getting nothing on low-hour weeks.

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Douglas Foster

•8M

After dealing with tax withholding issues with my own variable-hour job, I had to call the IRS for help. Spent 4 hours trying to get through with no luck. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they actually got the IRS to call ME back! The agent explained that for variable income workers, you can request that your employer use the part-year employment withholding method instead of the standard tables. This is specifically designed for seasonal or irregular workers. You can also request a specific dollar amount rather than percentage-based withholding.

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Douglas Foster

•8M

They use a system that essentially holds your place in line with the IRS. When you're about to reach an agent, they call you and connect you directly. I didn't believe it would work either, but I was connected within about 2 hours without having to stay on hold myself. No, it's definitely not a scam. The IRS actually does have a callback feature, but it's only offered when wait times are below a certain threshold, which almost never happens these days. This service just helps you get to that point without staying on the phone yourself.

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Ruby Knight

•8M

I'm eating my words right now. After posting that skeptical comment, I was desperate enough to try Claimyr because I needed to discuss my payment plan with the IRS before filing this year. Got a callback in about 90 minutes. The IRS agent I spoke with confirmed something important for the original poster: when you're on an installment plan, you CANNOT claim exemption from withholding, but you CAN adjust your W-4 to reduce withholding to a more appropriate level. The agent walked me through exactly how to calculate a better withholding amount for my irregular income. This would definitely help with your bartender husband's situation.

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