Can someone explain these tax deductions on my paycheck? (Fed Withholdng, Fed MED/EE, Fed OASDI/EE)

Those abbreviations can be confusing when you first start working! Let me explain what they are: Fed Withholding ($392.17) is your federal income tax being withheld based on what you put on your W-4 form. Fed MED/EE ($29) is Medicare tax, which is 1.45% of your gross wages. Everyone pays this regardless of income level. Fed OASDI/EE ($124) stands for "Old Age, Survivors, and Disability Insurance" which is the official name for Social Security tax. This is 6.2% of your wages up to a certain income threshold. The MED/EE and OASDI/EE are collectively known as FICA taxes, and they're mandatory. The "/EE" part just means it's the "Employee" portion - your employer also pays matching amounts for these taxes. A 27% total tax rate might be high depending on your income level. You might want to check your W-4 to see if you're claiming the right number of allowances. If you're single with one job, make sure you're not having extra withheld.

Hey! I had the same confusion when I started my first job. I used taxr.ai (https://taxr.ai) and it was super helpful for understanding my paycheck deductions. I uploaded a picture of my paycheck stub and it broke down exactly what each deduction was for and if the amounts looked correct based on current rates. It explained that OASDI is just another name for Social Security and showed me that my withholding was actually a bit high based on my salary. Might be worth checking out if you want to make sure everything's correct!

Just wanted to follow up about taxr.ai that I asked about earlier. I finally tried it this weekend and wow - total game changer! I uploaded my last three paychecks and it immediately flagged that I was having about $175 too much withheld each month. It actually explained that I should be claiming an additional allowance on my W-4 based on my situation. The breakdown of my FICA taxes (those MED/EE and OASDI/EE things) was super clear too. Already submitted my updated W-4 to HR and should see the difference in my next check!

If you're still confused about your withholdings after checking everything and want to talk to the IRS directly, good luck getting through their phone system lol. I tried calling them about my paycheck deductions last month and kept getting disconnected. Finally used Claimyr (https://claimyr.com) and they got me connected to an actual IRS person in about 20 minutes instead of spending hours on hold. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you then call you when an agent picks up. The IRS agent I spoke with confirmed my employer was withholding correctly but explained how I could adjust my W-4 to have less taken out if I wanted.

Ok I have to come back and say I was 100% wrong about Claimyr. After my skeptical comment I decided to try it anyway because I've been trying to reach the IRS about a missing refund for WEEKS. I used the service yesterday and got connected to an IRS agent in about 35 minutes. I honestly couldn't believe it worked. The agent was able to tell me why my refund was delayed (I had transposed two digits in my direct deposit info) and helped me get it corrected. Saved me from waiting another 8 weeks for a paper check. Props to whoever created this service - totally worth it for the time saved and stress reduction.

That withholding does seem high. What was your gross pay? I make about $4200 per month and my federal withholding is around $320. Maybe you checked the wrong box on your W-4? I remember when I first started my job I accidentally checked the box for "extra withholding" and they were taking out way too much.

Is this your first job ever? Those FICA taxes (the MED/EE and OASDI/EE) will be on every paycheck you ever get. They never go away lol. Welcome to adulthood where the government takes your money before you even see it!

I totally understand the confusion - those paycheck deductions can be overwhelming when you're starting out! Just to add to what others have said, you might want to use the IRS withholding calculator on their website (irs.gov) to double-check if your federal withholding is appropriate for your situation. Since you mentioned you're in Texas with no state income tax, that 27% does seem quite high for someone making around $60k annually ($2300 biweekly). The FICA taxes (MED/EE and OASDI/EE) are fixed at 7.65% total, so if those are taking about $153 of your check, that leaves about $392 for federal withholding which suggests you might be over-withholding. The good news is that if you are having too much withheld, you'll get it back as a refund when you file your taxes. But it's usually better to have the right amount taken out so you're not giving the government an interest-free loan all year!

Welcome to the working world! I remember being just as confused about all those deductions on my first paycheck. Everyone's already given you great explanations about what MED/EE and OASDI/EE are, but I wanted to add that you should definitely review your W-4 form. Based on your numbers ($392 federal withholding on $2300 gross), you're likely having way too much withheld. For someone making around $60k annually in Texas, your effective federal tax rate shouldn't be that high. You might have accidentally selected "married filing separately" instead of "single," or put down extra withholding without realizing it. The IRS withholding calculator that Javier mentioned is seriously helpful - I used it last year when I got a raise and realized I was over-withholding by about $150 per month. It walks you through your situation step by step and gives you exactly what to put on your W-4. Also, don't stress too much about the 27% total - once you fix your federal withholding, you'll probably be looking at closer to 22-23% total, which is much more reasonable for your income level!

This is such a common confusion for new workers! Just to add another perspective - I've been working for about 5 years now and those FICA taxes (MED/EE and OASDI/EE) become just part of the routine, but I totally get why they're shocking at first. One thing that helped me early on was thinking of these taxes as mandatory "insurance premiums" - the Medicare tax goes toward your future healthcare coverage when you're 65+, and Social Security goes toward your retirement and disability benefits. You're essentially paying into systems that will (hopefully) benefit you later. That said, everyone's right about your federal withholding looking too high. I make about the same as you ($60k range) and my federal withholding is usually around $280-300 per paycheck, not $392. Definitely use that IRS calculator others mentioned - it's honestly one of the most useful tools on their website. One last tip: when you do update your W-4, don't go too far in the other direction and under-withhold. You generally want to aim for either a small refund or owing a small amount (under $1000) at tax time. That way you're not giving the government a free loan, but you're also not hit with a big tax bill next April!

I went through the exact same shock when I got my first real job! That 27% total does seem high for your income level. Based on what you shared, your FICA taxes (MED/EE + OASDI/EE = $153) are correct at 7.65%, but that $392 federal withholding is likely too much. A few quick things to check on your W-4: - Make sure you selected "Single" if you're unmarried - Don't put anything in the "extra withholding" box unless you specifically want more taken out - If you only have one job, make sure you didn't accidentally check boxes that indicate multiple jobs The IRS withholding calculator everyone mentioned is really user-friendly - it'll tell you exactly what to put on a new W-4. At your income level, you should probably be closer to $280-320 in federal withholding, not $392. Don't worry though - if you've been over-withholding, you'll get that extra money back as a refund when you file your taxes. But definitely better to have the right amount taken out so you can use that money throughout the year instead of giving the government an interest-free loan!

I feel your pain! When I first saw those deductions on my paycheck, I thought there was some kind of mistake. The abbreviations are so confusing - why can't they just write "Social Security" instead of "OASDI/EE"? Everyone's given you great advice about the IRS withholding calculator, but I wanted to add that your HR department should also be able to help explain your specific deductions if you're still confused after checking everything online. Sometimes they can catch errors in how your W-4 was processed too. Also, just so you know - that shock of seeing how much gets taken out never really goes away completely, but you do get used to budgeting with your net pay instead of thinking about your gross pay. It's annoying but it's just part of working life. At least in Texas you don't have to deal with state income tax on top of everything else!

Hey there! I completely understand the sticker shock - I remember having the exact same reaction when I got my first "real" paycheck and saw how much was being taken out. It's like they don't prepare you for this in school at all! Everyone's already given you fantastic explanations about what those confusing abbreviations mean (seriously, why can't they just say "Social Security" instead of "OASDI/EE"?), but I wanted to chime in about that federal withholding amount. $392 on a $2300 biweekly check does seem quite high - you're looking at about a 17% federal withholding rate, which suggests you might be over-withholding. I'd definitely echo what others have said about using the IRS withholding calculator. It's actually pretty straightforward to use, and it'll give you specific guidance on how to fill out your W-4 correctly. The good news is that if you have been over-withholding, you're not losing that money - you'll just get a bigger refund next year. But like others mentioned, it's usually better to have the right amount taken out so you can use that money throughout the year. Also, don't feel bad about being confused by all this - the tax system is genuinely complicated and those paycheck abbreviations are not intuitive at all. You're asking all the right questions!

Welcome to the working world! I totally get that sticker shock - seeing nearly 30% of your paycheck disappear is jarring no matter how you slice it. Everyone's already given you excellent explanations of what those cryptic deductions mean, but I wanted to add a practical tip that helped me when I was in your shoes. Keep a copy of this paycheck stub and compare it to your next few paychecks to make sure the deductions are consistent. Sometimes there are one-time deductions (like health insurance enrollment fees or 401k setup) that can make your first paycheck look worse than it actually is ongoing. Also, since you're in Texas with no state income tax, you're actually in a better position than most workers - I have friends in California who lose over 35% of their gross pay between federal, state, and local taxes plus FICA. That $392 federal withholding does look high though, so definitely use that IRS calculator everyone mentioned. One last thing - once you get your W-4 sorted out, consider putting some of those "extra" dollars you get back into a high-yield savings account or 401k if your employer offers one. That way you're still saving money, but it's working for you instead of giving the government a free loan!

I just wanted to jump in and say how helpful this entire thread has been! As someone who's also relatively new to understanding paycheck deductions, seeing everyone break down those confusing abbreviations has been incredibly educational. The point about FICA taxes being like "insurance premiums" for future benefits really resonated with me - it makes those deductions feel less like money just disappearing into thin air. And all the advice about the IRS withholding calculator sounds like a game-changer for those of us who might be over-withholding. One thing I'd add is that it might be worth setting up a simple spreadsheet to track your paycheck deductions over the first few months of work. That way you can easily see if anything changes or if there were any one-time deductions that made your first paycheck look worse than normal. Plus, having that data organized will make it easier when you use the IRS calculator to figure out your optimal withholding. @Nathaniel - definitely don't stress too much about this. It sounds like you just need to adjust your W-4, and then you'll probably see a nice bump in your take-home pay! The fact that you're asking these questions early on shows you're being smart about understanding your finances.

This thread has been incredibly helpful! I'm also new to the workforce and was completely baffled by all those deductions on my first paycheck. Seeing everyone explain what MED/EE and OASDI/EE actually mean (Medicare and Social Security taxes) has been a huge relief - I thought there was some mistake with my payroll! The advice about using the IRS withholding calculator is gold. I had the same issue where my federal withholding seemed way too high, and it turns out I accidentally filled out my W-4 incorrectly. I was so worried about owing money at tax time that I ended up having way too much withheld. For anyone else reading this who's confused about their paycheck - definitely don't be afraid to ask your HR department for help too. I was embarrassed to admit I didn't understand my own paycheck, but they were actually really helpful in walking me through each deduction and helping me submit a corrected W-4. It's honestly ridiculous that we're not taught any of this practical stuff in school! But thanks to threads like this, at least we can help each other figure it out.

I'm going through the exact same thing right now! Just got my first paycheck last week and had the same panic seeing how much was taken out. Reading through this thread has been so reassuring - I thought I was the only one completely lost by all these deductions. Those abbreviations are absolutely terrible! Why can't they just say "Social Security" and "Medicare" instead of making us decode "OASDI/EE" and "MED/EE"? It's like they're trying to make it as confusing as possible. Based on everyone's advice here, I'm definitely going to check out that IRS withholding calculator this weekend. My federal withholding also seems way too high - I think I got scared during orientation and accidentally had them withhold extra money "just to be safe." Now I realize I'm basically giving the government a free loan when I could be using that money for rent, groceries, or actually starting to save! Thanks to everyone who shared their experiences - it makes me feel so much better knowing that paycheck shock is totally normal and that there are actually tools to help us figure this stuff out. Why don't they teach any of this in school?!

I totally feel your pain! When I got my first real paycheck, I had the exact same reaction - I actually called my mom thinking there was some kind of mistake because nearly 30% was gone. Those abbreviations are seriously the worst - I spent like an hour googling "OASDI/EE" because I thought it was some weird company-specific deduction! Everyone's already given you amazing explanations about what those taxes actually are, but I wanted to add that your situation is super fixable. That $392 federal withholding on a $2300 gross definitely seems too high for someone at your income level. I made a similar mistake on my W-4 - I was so paranoid about owing money at tax time that I basically told them to withhold extra "just in case." The IRS withholding calculator that everyone keeps mentioning literally saved me about $200 per month once I figured out how to use it correctly. And don't worry about looking clueless when you talk to HR about updating your W-4 - they deal with this stuff constantly and are usually really helpful. The silver lining is that if you've been over-withholding, you'll get all that extra money back as a refund. But you're absolutely right to want to fix it so you can actually use that money for rent, groceries, and maybe even start building an emergency fund instead of giving the government a free loan!