When I started my job, I filled out a W-4 and claimed 3 allowances. While going over my pay check information, I noticed that my employer stopped taking out federal taxes each check.
I went in and they said the W-4 on file that I submitted "Total number of allowances you’re claiming: 3", but they said the computer says I'm at "6" and they would not explain why.
As I know, this means when I file taxes next January, I'll need to pay a lot, which is really inconvenient.
Two years on...and my employer made the mistake a second time, and to at least one other employee I know. This makes me wonder, is there some advantage to the employer for making this mistake again and again? For instance, does that mean my employer did not pay their fair share of taxes too? Or is there some other possible motivation for them to mess this up three times?