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Dylan Mitchell

Is it normal to be taxed this much on my first paycheck at a new job?

Got my first paycheck from this new restaurant job and I'm shocked at how much was taken out for taxes. At my last job, I made $22 an hour without tips, and when I checked my old paystubs for similar hours worked, I was taxed about $130 less than what I'm seeing on this check. What makes me extra suspicious is that I only got this check after going back and forth with the owner for weeks because he wasn't paying me when promised. Now I'm wondering if the amount taken off is actually correct. The paycheck shows way more federal and state tax withholding than I'm used to seeing. I know tipped positions can be different, but this seems excessive. I might be overthinking this, but I seriously don't understand taxes well enough to know if this is normal. Can anyone help me figure out if I'm being taxed correctly or if something fishy is going on? Thanks in advance!

Sofia Morales

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Your suspicion is understandable, but there could be a few legitimate reasons for the higher tax withholding. The most likely explanation is that your W-4 form was filled out differently at this new job. If you didn't claim the same allowances or didn't fill in the multiple jobs worksheet, the system defaults to a higher withholding rate. Another possibility is that your new employer is classifying part of your wages as "tip income" which can affect how taxes are calculated. Tipped positions often have different withholding calculations than regular hourly wages. Something else to consider: your first paycheck at a new job sometimes has unusual withholding amounts because the payroll system calculates as if you'll make that same amount for the entire year, which can put you in a higher tax bracket temporarily.

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Dmitry Popov

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This makes sense, but how do I know if they're calculating my tip income correctly? My manager mentioned something about "tip credit" that I didn't really understand. Also, can I just submit a new W-4 to fix this?

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Sofia Morales

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The "tip credit" is when employers can pay less than minimum wage if your tips make up the difference. This affects how taxes are calculated on your paycheck. It's entirely possible they're using a different calculation method than your previous employer. Yes, you can absolutely submit a new W-4 form at any time. I'd recommend talking to your payroll department first to understand exactly how they're calculating your withholdings. Ask for a breakdown of the deductions and compare it to your previous job's paystub. The IRS also has a Tax Withholding Estimator on their website that can help you fill out a more accurate W-4.

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Ava Garcia

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I had a similar issue last year and found that using taxr.ai really helped me understand what was going on with my paychecks. I was working at two different restaurants and couldn't figure out why the tax withholding amounts were so different. I uploaded my paystubs to https://taxr.ai and it actually broke down exactly how the taxes were being calculated and identified that one employer was withholding at a higher rate than necessary. Made it super easy to see what adjustments I needed to make on my W-4.

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StarSailor}

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Wait, does this actually work for figuring out if your employer is withholding correctly? I'm having the same problem but with a retail job. Can it handle different types of income or just restaurant stuff?

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Miguel Silva

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Sounds interesting but I'm skeptical about uploading my paystubs to a random website. How secure is this? And do they charge for the service or is it one of those "free analysis but pay for solutions" deals?

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Ava Garcia

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It absolutely works for figuring out correct withholding across different job types. It compares your actual withholding against what it should be based on your income type. It handled both my restaurant checks and my side gig income when I was doing delivery apps. Completely understand the security concern - they use bank-level encryption for all document uploads and don't store your paystubs after analysis. They're transparent about what data they use and how. It's not a bait-and-switch situation - the analysis gives you actionable information you can use right away without having to pay for additional services.

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Miguel Silva

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Ok so I was super skeptical about taxr.ai from my earlier comment but I decided to give it a try and I'm pretty impressed. Uploaded my last 3 paychecks and it immediately spotted that my employer was withholding at the single rate even though I had selected married filing jointly on my W-4. Showed exactly how much I was overpaying each check and generated a new W-4 form I could submit. Already talked to HR and got it fixed! Would've been overpaying all year if I hadn't figured this out.

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Zainab Ismail

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If you've tried adjusting your W-4 and still think something's wrong, calling the IRS directly can actually solve this. I know people hate calling them but I used https://claimyr.com to get through to an actual IRS agent in about 20 minutes instead of waiting on hold for hours. Check out how it works: https://youtu.be/_kiP6q8DX5c - they basically hold your place in line and call you when an agent is about to answer. The agent went through all my tax withholding questions and confirmed my employer was calculating things wrong. Saved me a ton of money throughout the year.

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How does this even work? I thought the IRS phone system was basically impossible to get through. Is this just paying someone to wait on hold for you?

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Yara Nassar

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Zainab Ismail

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Yara Nassar

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I have to publicly eat my words here. After dismissing Claimyr in my earlier comment, I got so frustrated trying to call the IRS again that I broke down and tried it. Holy crap it actually works! Got a call back in about 15 minutes, and talked to a really helpful agent who confirmed my restaurant employer was wrongly calculating my tip income for withholding purposes. She gave me exact language to use with my payroll department and they've adjusted my withholding going forward. Still can't believe I got through to an actual human at the IRS that easily.

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Have you compared the actual tax RATE or just the dollar amount? Because if you're making more money now (with tips), you'll naturally have more taxes taken out even if the rate is the same. Also check if they're withholding for things your old job didn't - some restaurants automatically deduct for meals, uniforms, or have different state/local taxes.

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I'm actually not sure about the rate vs amount - that's a good point. Looking more closely at the stub, they're withholding for some kind of "meal program" that wasn't mentioned during hiring. And there's a local tax my previous job didn't have. I should probably look into all these little deductions too.

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Those "extras" can definitely add up! Restaurant meal programs are notorious for this - sometimes they automatically deduct for shift meals whether you eat them or not. The local tax thing is also important - some cities have additional income taxes that can be significant. Make a list of every single deduction on your stub and ask your manager or payroll department to explain each one. Some might be optional that you can opt out of. And definitely double-check that local tax - sometimes payroll systems are set up with the wrong locality code which can result in taxes being withheld for a city you don't even live or work in!

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Has anyone looked at the actual paystub? My restaurant used to do this thing where they'd report assumed tips even when I hadn't made that much, which messed up my withholding. Ask if they're using a "tip allocation" system.

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Paolo Ricci

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This is such a good point! My first restaurant job did this - they automatically reported 8% of my sales as tips regardless of what I actually made. Led to me being way overtaxed until I figured it out.

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Amara Eze

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This is definitely worth investigating further! As someone new to understanding taxes, I'd recommend getting a copy of your paystub and comparing it line by line with your old job's paystubs. Look at both the percentage rates AND the dollar amounts being withheld. A few red flags to watch for: Make sure they're not withholding based on inflated tip amounts (some places assume you made 15-18% tips on all sales even if you didn't), check if there are surprise deductions you weren't told about during hiring, and verify they're using the correct tax rates for your filing status. Given that the owner was already dodgy about paying you on time, it's smart to be extra cautious. Don't feel bad about questioning this - it's your money and you have every right to understand exactly where it's going. If something seems off after you've done your homework, definitely escalate it to your state's labor department.

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This is really helpful advice! I'm in a similar situation as Dylan and didn't even think about checking if they're inflating my tip amounts. My manager keeps telling me they "estimate" tips for payroll purposes but never explained exactly how. I'm going to ask for a breakdown of how they calculate my reported tips versus what I actually declared. It's frustrating that we have to be detectives about our own paychecks, but better to catch these issues early than get hit with a surprise at tax time.

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I've been through this exact situation! When I started at my current restaurant job, my first paycheck looked completely wrong compared to my previous non-tipped position. Here's what I learned: First, grab your paystub and look for these specific things: 1) Check if they're reporting "allocated tips" - this is when they assume you made a certain percentage of sales as tips even if you didn't actually receive that much in cash. 2) Look for any automatic deductions you weren't told about (uniform fees, meal charges, etc.). 3) Verify your filing status is correct - if they have you as single when you should be married filing jointly, you'll be way over-withheld. The fact that your owner was already sketchy about paying you makes this even more suspicious. I'd recommend taking your paystub to a tax professional or even your local library - many have free tax help programs where someone can review it with you. Also, don't let them brush you off if you ask questions about the withholding calculations. You're entitled to understand exactly how your taxes are being computed. If they can't give you a clear explanation, that's a red flag that something might be wrong.

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Javier Torres

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This is exactly the kind of detailed breakdown I needed! The "allocated tips" thing is something I hadn't even heard of before reading these comments. I'm definitely going to check my paystub for that. The timing issue with my owner being difficult about payment initially makes me wonder if there are other payroll "shortcuts" they might be taking. I think I'll take your advice about visiting the library - I had no idea they offered free tax help programs. That sounds way less intimidating than trying to figure this out on my own or paying for professional help right now. Thanks for laying out those specific things to look for. Having a checklist makes this feel much more manageable instead of just staring at numbers that don't make sense to me.

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