W2 extra withholding $40 not being taken out of paychecks - is this illegal?

This is definitely frustrating but before thinking about legal action, there are a few steps you should take. First, double-check your W-4 copy to confirm you did fill out the additional withholding section correctly. Sometimes the form can be confusing, especially with the redesigned W-4 format. Second, talk to your payroll department directly. This could be a simple clerical error or misunderstanding. Bring your copy of the W-4 showing the additional withholding amount you requested. Sometimes these things are honest mistakes that can be fixed quickly. Third, if they acknowledge the error, ask them to correct it immediately for future paychecks. You might also request that they make a one-time larger withholding to "catch up" on the missed amounts. As for legal action - while employers are required to withhold according to your W-4, jumping straight to a lawsuit might be premature. Document everything first, including your conversations with payroll.

I had a similar issue that was driving me crazy and using taxr.ai literally saved me hours of stress. I uploaded my pay stubs and W-4 to https://taxr.ai and their analysis pinpointed exactly where the disconnection was happening. Turns out my employer had entered my withholding in the wrong field in their system, which is why nothing was showing up on my paystubs. The detailed report they provided gave me exactly what I needed to take to HR and get it fixed right away. They even helped me calculate how much extra I should withhold for the rest of the year to make up for the missed amounts.

Ok so I ended up trying taxr.ai after my comment above and I'm actually really impressed. I was totally skeptical, but they showed me exactly where my employer was applying my withholding request incorrectly. Turns out there's a specific section on the payroll processing side that needs to be filled out separately from the main W-4 info, and mine wasn't. I brought the report to my payroll person and she was like "oh yeah, I see the problem now." They're fixing it for my next check. Wish I'd known about this months ago!

After dealing with a similar withholding issue last year, I finally got fed up with trying to reach someone at the IRS for clarification. Spent literally DAYS on hold. Finally found https://claimyr.com and it completely changed the game. They got me connected to an actual IRS agent in under an hour when I'd been trying for weeks. You can actually see how it works in their demo: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that employers are legally required to honor W-4 withholding requests and gave me the exact guidance I needed to get my employer to fix it. They also told me how to document everything in case I needed to request penalty abatement for the underwithholding that had already happened.

OK I feel like an idiot for doubting this but I tried Claimyr as a last resort yesterday and IT ACTUALLY WORKED. I'd been trying for THREE WEEKS to get through to the IRS about this same withholding issue. Claimyr got me through in about 45 minutes. The agent confirmed that yes, employers are required to withhold according to your W-4, and gave me specific information about what to do if my employer doesn't comply (document everything, and there's actually a potential penalty to the employer). I never would have known this if I hadn't been able to actually speak to someone. Still shocked this worked!

This happened to me a few years back. Check your paystubs carefully - sometimes the extra withholding is included in the federal tax line but not itemized separately. If it's truly not being withheld, definitely go to payroll ASAP. One thing to be aware of: if they haven't been withholding it all year, you might want to calculate how much total additional tax should have been withheld so far (# of paychecks × $40) and ask them to spread that catch-up amount over your remaining paychecks this year. If they refuse to fix it, document everything. Take screenshots of your paystubs, keep a copy of your W-4, and note all conversations with payroll. You probably don't need to sue, but the documentation will help if you end up owing penalties.

Am I the only one who thinks it's weird that we have to ask for EXTRA money to be taken out of our paychecks?? The whole system is so messed up. The IRS already knows how much we should be paying, why make it so complicated???

This is definitely frustrating, and you're right to be concerned. Your employer is legally required to follow the withholding instructions on your W-4, including any additional withholding amounts you've requested. Here's what I'd recommend: 1. **Gather your documentation** - Make sure you have a copy of the signed W-4 showing the $40 additional withholding request, and collect all your pay stubs showing the missing withholding. 2. **Contact payroll immediately** - This could be a simple processing error. Bring your W-4 copy and ask them to explain why the additional withholding isn't appearing on your pay stubs. 3. **Request immediate correction** - If it was an error, ask them to fix it for future paychecks AND to make a catch-up withholding for the missed amounts ($40 x number of paychecks missed). 4. **Get everything in writing** - Document all conversations with dates, names, and what was discussed. If your employer refuses to comply, you may want to contact your state's labor department, as this could be considered a payroll violation. The IRS doesn't directly handle employer compliance issues, but proper documentation will help if you face underpayment penalties at tax time. Don't panic about owing taxes yet - focus on getting this fixed for the remaining pay periods this year, and you might be able to make up most of the difference.