Started new job with ADP payroll but no federal income tax is being withheld! W4 setup error?

This definitely sounds like there's a problem with how your W4 information was entered into the ADP system. Tax credits reduce your final tax bill dollar-for-dollar, but they don't eliminate withholding completely - especially at your income level. My guess is that when you entered the $9,000 in tax credits on Step 3 of your W4, the payroll system might be treating that as a per-paycheck amount rather than an annual amount. Another possibility is that you might have inadvertently entered an amount in Step 4(b) for deductions that was calculated incorrectly. I'd recommend speaking with your HR or payroll department immediately. Ask them to review how your W4 information was entered into the system. You definitely want to get this fixed ASAP to avoid a big tax surprise next year. Federal income tax should absolutely be withheld from a $190k salary, even with dependents and tax credits.

When I went through something similar last year, I tried the IRS withholding estimator but it was super confusing. Then I found this service called taxr.ai (https://taxr.ai) that analyzed my paystub and tax situation. It immediately spotted that my employer had entered my W4 information into ADP incorrectly. The tool showed me exactly what my withholding should be based on my salary and credits, and gave me a document explaining what needed to be fixed that I could take to HR. Saved me from having a massive tax bill! It also explained how the new W4 works differently from the old allowances system which was really helpful.

Wanted to update everyone - I took the advice about using taxr.ai and it was super helpful! The analysis showed that my employer had entered my $9,000 in tax credits as a PER PAYCHECK amount instead of an annual amount (just like someone suggested might be happening). I printed out the report it generated and took it to HR yesterday. They were actually really thankful because apparently several other new hires might have the same issue. They're fixing it for my next paycheck and setting up some additional withholding to catch up on what I've missed so far. Crisis averted!

If you need to talk to someone at the IRS to verify the correct withholding calculation, good luck with that! I spent HOURS trying to get through to a human at the IRS about a similar payroll issue. Kept getting disconnected or sitting on hold forever. Eventually I used Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to confirm exactly how the W4 credits should impact withholding and explain what my employer needed to do to fix it. Saved me days of frustration trying to reach someone.

I'm back to eat crow! After dismissing Claimyr as a scam, I was still struggling with my withholding issue and getting nowhere with the IRS phone line (2+ hours on hold twice). I decided to give it a shot out of desperation. Not only did it work exactly as advertised, but the IRS agent I spoke with confirmed that my employer had completely misunderstood how to enter the Step 3 credits. For anyone dealing with ADP withholding issues, the agent told me this is actually a common problem. She explained exactly what my payroll department needed to fix and even sent me an email with official documentation I could show them. The service literally saved me thousands in potential tax penalties.

Have you checked if there might be other pre-tax deductions beyond your 401k and HSA that could be lowering your taxable income? Things like transit benefits, dependent care FSAs, or health insurance premiums can sometimes add up to reduce your taxable wages significantly. Still, at $190k, you should definitely be seeing some federal withholding.

Did you check box 4(c) on your W4 for additional withholding? Sometimes if you put a negative number there (which you shouldn't), it could reduce your withholding incorrectly. ADP's system should catch this, but I've seen weird glitches happen.

This is a really common issue with ADP and the new W4 form! I had almost the exact same problem when I started my current job. The issue is likely that ADP's system is misinterpreting how your tax credits should be applied. Here's what probably happened: When you entered $9,000 in tax credits on Step 3, the system may have divided that by your number of pay periods (26 for biweekly) and is treating it as $346 per paycheck in reduced withholding. But then it's also factoring in your dependents and other deductions, which could be zeroing out your federal withholding entirely. I'd suggest doing two things immediately: 1. Contact HR/payroll and ask them to print out exactly what's entered in their system vs. what you submitted on your W4 2. Use the IRS withholding calculator to figure out what your actual withholding should be Don't wait on this - at your income level, you should be having around $1,200-1,500 withheld per paycheck for federal taxes, even with your credits and dependents. The longer you wait, the bigger catch-up withholding you'll need later in the year to avoid penalties.