Shocked by High Tax Withholding on First Paycheck - Is This Normal?

This definitely doesn't sound normal for a part-time job. The most likely explanation is that your employer calculated your withholding as if you'll be making that same amount for the entire year, which would put you in a much higher tax bracket than you'll actually be in. The W-4 form is exactly what you need to adjust. When you first started, you probably filled one out, but might not have completed it optimally for your situation. Since this is your only job and you're working part-time, you might qualify for exemption from withholding if your income will be low enough. Otherwise, you can adjust your W-4 to more accurately reflect your expected annual income. Talk to your HR department or manager as soon as possible. Bring your paystub so they can see exactly what happened. They should be able to help you complete a new W-4 that will result in more appropriate withholding on future paychecks.

I had a similar issue when I started my retail job! I found this service called taxr.ai (https://taxr.ai) that really helped me understand my paycheck withholdings. I was completely confused about why my first few checks were so small, and their system analyzed my paystub and explained exactly what was happening. Turns out I had accidentally indicated on my W-4 that I had multiple jobs (I checked a box I shouldn't have), which made the system withhold WAY more than necessary. The taxr.ai tool showed me exactly what to change on a new W-4 form to fix it. They have this feature where you can upload your paystub and get a full breakdown of what's happening with your withholdings.

Just wanted to update on my experience with taxr.ai after asking about it here. I finally got around to trying it with my contractor payments situation, and it was surprisingly helpful! As a 1099 worker, I've been completely guessing on my quarterly tax payments, usually just sending 30% of whatever I make. The service analyzed my specific situation and showed me I was actually overpaying by quite a bit. They created a personalized tax plan that accounts for the business deductions I qualify for, which I honestly hadn't been tracking properly. Now I'm setting aside a more appropriate amount AND keeping better records of deductible expenses. Definitely less stress knowing I'm doing it right!

If you're having trouble getting this resolved with your employer, you might want to try Claimyr (https://claimyr.com). I had a withholding disaster last year where my company somehow classified me completely wrong, and I couldn't get anyone at the IRS to help me figure it out. I tried calling for literal WEEKS. Claimyr got me through to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The agent walked me through exactly what forms I needed to fix the situation. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c It's especially useful now since the IRS is still dealing with huge call volumes and most people can't get through on their own. The agent I spoke with actually explained that my employer had classified me as having multiple jobs instead of just one, which is probably similar to what happened to you.

Alright I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, my curiosity got the better of me and I decided to try it when I had an issue with a missing stimulus payment that got applied to the wrong tax year. I'd already spent THREE DAYS trying to reach someone at the IRS with no luck. Got through in about 25 minutes with Claimyr. The IRS agent was able to see exactly what happened and fixed it right on the call. The payment was reissued and I received it two weeks later. I've never been happier to be wrong about something I called a scam. Sometimes you gotta admit when something actually works. Saved me from taking a day off work just to sit on hold.

Check your pay stub carefully to see exactly what they're taking out. $260 seems WAY too high for just income tax on a part-time job. They might be deducting for health insurance, retirement, or something else you didn't realize you signed up for. My daughter had this happen and it turned out they automatically enrolled her in an expensive health plan she didn't need because she was on our family plan already. Also, is it possible this check included some kind of training period or orientation that was paid differently? Sometimes the first check can look weird because of that.

ok so here's what you need to do right now: go to the IRS website and look up the "Tax Withholding Estimator" tool. Enter your info and it'll tell you exactly how to fill out a new W-4. It's super easy and will fix this problem. My boyfriend had the same issue at his new job and this fixed it on his very next paycheck!!

Another thing to check - are you being paid as an independent contractor (1099) instead of an employee (W-2)? If they're treating you as a contractor when you should be an employee, the tax situation is completely different. Independent contractors have to pay both the employer and employee portions of Social Security and Medicare taxes, which could explain the high withholding. Ask specifically if you're W-2 or 1099. If they say 1099 but you have set hours, use their equipment, and they control how you do the work, they might be misclassifying you which is actually illegal.

This is definitely frustrating but totally fixable! I've seen this happen to so many people starting their first jobs. A few things to check immediately: 1. Look at your paystub line by line - break down exactly what's being withheld (federal income tax, state tax, Social Security, Medicare, plus any voluntary deductions) 2. The biggest issue is probably your W-4. When you filled it out, if you left it mostly blank or didn't claim any allowances/adjustments, the system defaults to withholding as if you're single with no dependents making that pay rate all year long. For a part-time worker, this creates massive over-withholding. 3. Go to HR/your manager ASAP with your paystub and ask to fill out a new W-4. Since you're part-time and this is likely your only job, you can probably claim more allowances or use the newer W-4 format to reduce withholding significantly. The good news is any over-withholding will come back to you as a refund when you file taxes next year. But definitely fix this now so your future paychecks aren't eaten up unnecessarily. Most employers are understanding about this - it's a super common new employee issue.

This is such a frustrating situation but you're definitely not alone! I went through something very similar at my first retail job. The combination of improper W-4 setup plus those sneaky uniform and meal plan deductions can really shock you on that first paycheck. Since you've already identified the extra deductions, definitely push back on those - especially the uniform charge. In many states, employers can't legally charge you for required work uniforms. The meal plan should definitely be optional if you didn't explicitly agree to it. For the tax withholding part, the key is getting that W-4 corrected ASAP. When you talk to your manager tomorrow, ask specifically which version of the W-4 form they use. If it's the newer 2020+ version, the IRS Tax Withholding Estimator will be your best friend for figuring out exactly what to put in each section. One thing that might help ease your stress - if you're working part-time and making under about $12,000-$13,000 for the year, you likely won't owe any federal income tax at all. That means everything being withheld for federal taxes will come back to you as a refund. Still worth fixing now though so you can actually use that money for textbooks instead of waiting until next spring! Keep us updated on how the conversation with your manager goes. Most employers are pretty understanding about fixing these new employee W-4 issues once you bring it to their attention.