Employer messing up W4 withholding - Walmart payroll issues causing tax problems

The issue here is that the W-4 form changed significantly in 2020, and some employer payroll systems still haven't fully adapted to these changes. The "married" vs "single" checkbox issue is a common misunderstanding. Under the current W-4 system, if both you and your husband work, you should check the box in Step 2(c) that says "If there are only two jobs total, you may check this box." This helps account for the higher tax bracket that applies when combining both incomes. Or you can use the IRS Tax Withholding Estimator online to get more precise numbers for Step 4(c) "Extra withholding." The $212 withholding might actually be correct given your combined income (around $92k). To check if this is appropriate, try using the IRS Withholding Calculator online. Enter both of your incomes, and it will recommend the proper withholding amount. For the underwithholding that's already happened this year, you have two options: 1) Increase his withholding even more for the remaining months to catch up, or 2) Make an estimated tax payment directly to the IRS using Form 1040-ES.

I had a similar issue with my employer's payroll system last year. The W4 system at https://taxr.ai actually helped me figure out the exact numbers to put in my form to get the right withholding. Their tool specifically walks you through how to handle situations where employer systems are messing up the calculations. I think what might be happening is that Target's system is defaulting to the old W4 calculations even though they're using the new form. When I ran into this, the taxr.ai calculator showed me exactly what to put in each field to get the right withholding regardless of what stupid defaults the payroll system was trying to use.

Just wanted to follow up - I tried the taxr.ai tool mentioned above and it was super helpful! It showed me exactly what was going wrong with my withholding calculations. Turns out my employer's system was using outdated withholding tables which was causing similar issues to what you're experiencing with Target. The tool generated a custom letter I could give to HR explaining exactly what fields needed to be fixed in their system. They were actually receptive when I showed them the specific IRS regulations it cited. My withholding is now correct for the first time in two years without having to use the "single" workaround.

I had a nightmare situation with payroll at my job last year where they messed up my withholding completely. I spent WEEKS trying to get someone at the IRS on the phone with no luck. Finally used Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in under 45 minutes. They have this system where they keep calling the IRS for you and then call you when they get through - there's a demo at https://youtu.be/_kiP6q8DX5c that shows how it works. The IRS agent I spoke with walked me through exactly how to calculate the correct withholding for my situation and confirmed that employers can't force you to select "single" if you're married - that's actually not correct procedure. She also gave me the specific reference numbers for the IRS guidelines that I could show to HR to get them to fix their system.

Just wanted to update - I was skeptical about Claimyr but I was desperate after trying to reach the IRS for weeks about my withholding issue. Got connected to an actual IRS representative in about 35 minutes who was super helpful. The agent confirmed that the "select single even though you're married" advice is completely wrong and shouldn't be happening. She explained that since the 2020 W-4 redesign, the "single" vs "married" selection affects the standard deduction and tax bracket thresholds used in withholding calculations, not the actual filing status. She gave me specific instructions to provide to my employer's payroll department to fix their system. Never thought I'd say this, but that was probably the most productive call with a government agency I've ever had. Still can't believe I got through without waiting for hours.

Target's HR is notorious for this garbage. My wife works there and had the EXACT same issue. We fixed it by her printing out the actual IRS W-4 form, filling it out correctly (as married), and taking it directly to HR in person instead of using their electronic system. Tell them it's their responsibility to input the correct information from the official form into their system. Also, make sure you're using the Two Earners/Multiple Jobs Worksheet that comes with the W-4 form or use the IRS withholding calculator. With your income levels, you probably need additional withholding anyway to account for both incomes pushing you into a higher tax bracket.

Everyone's giving great advice about fixing the W4, but don't forget to also plan for what you'll owe for the underwithholding that's already happened this year! With your combined income and the minimal withholding so far, you could be looking at a pretty significant tax bill next April. If I were you, I'd use the IRS Tax Withholding Estimator to see where you currently stand for the year. You might want to have extra withholding taken out for the rest of the year OR make an estimated tax payment to avoid underpayment penalties.

This is a really frustrating situation, but you're not alone - many employers are struggling with the updated W-4 system. Here's what I'd recommend: 1. **Don't let them force the "single" selection** - that's incorrect and will cause ongoing problems. As others mentioned, print out the official IRS W-4 form, fill it out correctly as "married filing jointly," and hand-deliver it to HR. 2. **Use the Two Earners/Multiple Jobs Worksheet** - with your combined income of ~$92k, you're likely in a higher tax bracket than the standard withholding tables account for. This is probably why they're taking $212 now - it might actually be close to correct. 3. **Check your math for the year** - with only $31 withheld federal taxes so far on a $27k income, you're significantly underwitheld. Even if his effective tax rate is just 10%, that's $2,700 in federal taxes for the year, meaning you're already behind by thousands. 4. **Consider making an estimated payment** - don't wait until next April to discover you owe a huge amount plus penalties. Use Form 1040-ES to make a payment directly to the IRS now. The $212 withholding might feel like a shock, but it's likely much closer to what should have been happening all along. Better to fix it now than face a massive tax bill later!

I went through almost the identical situation with my employer last year! The "select single even though you're married" thing is unfortunately common with older payroll systems that haven't properly updated for the 2020 W-4 changes. Here's what worked for me: I printed out the official IRS W-4 form from irs.gov, filled it out correctly as "married filing jointly" and checked the box in Step 2(c) for two earners, then hand-delivered it to HR with a note saying "Please process this official IRS form as submitted." When they pushed back, I politely but firmly told them that forcing employees to select incorrect filing statuses violates IRS guidelines. The $212 withholding actually might be close to correct given your combined income. With you making $65k total and your husband making $27k, you're looking at roughly $92k household income, which puts you in a higher bracket than what standard withholding tables assume for individual jobs. Don't panic about the underwithholding so far, but definitely address it soon. I'd recommend using the IRS Tax Withholding Estimator to see exactly where you stand for the year, then either increase his withholding even more for the remaining pay periods OR make an estimated tax payment using Form 1040-ES. The next estimated payment deadline is June 15th, but you can pay anytime online through IRS Direct Pay. You've got this - it's frustrating but totally fixable!