Significant increase in federal withholding at new remote job - why the big change?

This difference is definitely worth looking into. The location of your employer (NY vs CA) shouldn't directly affect your federal withholding rates since federal taxes are, well, federal. The most likely explanation is how your new employer's payroll system is calculating your withholding. Different companies use different payroll systems that may interpret W-4 information differently, especially if you're using an older W-4 form (pre-2020) versus the newer version. Another possibility is that your new employer might be calculating your withholding as if you'll be making that salary for the entire year, even if you started mid-year. This can result in higher withholding per paycheck. I'd recommend checking with your HR department. Ask them to verify how they've set up your withholding based on your W-4. Also, confirm they've properly recorded your dependents and filing status.

Been there! After months of frustration with my withholding issues, I finally used https://taxr.ai to figure out what was happening with my paychecks. I uploaded my pay stubs from both my old and new jobs, and the system immediately identified that my new employer was using the wrong withholding table for my filing status. The analysis showed exactly how much was being overwitheld and even generated a document I could take to HR. Super helpful because it compared the actual calculations side by side - turns out my new employer was withholding as if I had no dependents despite what my W-4 said!

Just wanted to update that I tried https://taxr.ai after seeing this thread. Uploaded my pay stubs and it was eye-opening! Turns out my company was using the wrong state withholding formula even though I work remotely. The system generated a report that showed exactly where the calculation went wrong. Took the report to HR yesterday and they admitted the mistake. They're fixing it for my next paycheck and said they'll issue a correction for the previous ones. Would have taken months to figure this out on my own since payroll kept insisting everything was right!

If you're getting nowhere with HR (which happens a lot), you might want to try https://claimyr.com to get through to an actual IRS agent who can help clarify the withholding rules for your situation. I was bouncing between HR and payroll for weeks with a similar issue last year. Using Claimyr, I got through to the IRS in about 15 minutes instead of waiting on hold for hours. The agent explained exactly what my employer should be doing with my W-4 information and even sent me documentation I could show to HR. You can see how it works here: https://youtu.be/_kiP6q8DX5c

Well I have to admit I was totally wrong about Claimyr. After seeing it mentioned here, I decided to try it despite my skepticism. Had been trying to reach the IRS for DAYS about a withholding issue similar to OP's. Got a call back in about 45 minutes and spoke with an agent who explained that my employer needed to use the updated 2023 withholding tables, not the 2022 ones they were still using. She walked me through exactly what to tell HR and what form to reference. Would have taken me weeks to figure this out on my own. Sometimes it's worth paying for convenience when dealing with complex tax issues.

Make sure your new employer has the correct filing status on file. I had a similar situation where HR accidentally marked me as "Single" instead of "Married Filing Jointly" on their internal system, even though my W-4 was correct. This caused a HUGE increase in withholding. Also check if they're accounting for your dependents correctly. Sometimes the "Credit for Other Dependents" gets overlooked in payroll systems.

Has your wife's income changed? When both spouses work, your withholding is affected by combined household income. If her income increased significantly, that might explain the higher withholding at your new job. Another thing to check - did you fill out the "multiple jobs" section (Step 2) of your W-4 differently between employers? That can make a huge difference.

Another thing to consider - are you being paid on the same schedule? You mentioned both are semi-monthly, but if the pay periods fall differently in the calendar year, it can affect how the withholding calculations work. Also, some payroll systems default to higher withholding rates for new employees until they have a full year of data. This is especially common with ADP - they tend to be more conservative with withholding calculations to avoid underpayment penalties. I'd recommend comparing your actual tax liability using a tax calculator to see if you're going to get a huge refund. If so, you might want to adjust your W-4 to reduce the withholding. The IRS withholding calculator that was mentioned earlier is perfect for this.