16

I got a new job. My first paycheck was for only one week of work since I started during a pay period. These are the figures:

Gross Pay: 2395.83
Federal Income Deduction: 151.62
California State Income Deduction: 90.63

My second paycheck was for 10 days of work so I figured the deductions would simply be double but they are significantly more. These are the figures:

Gross Pay: 4791.67
Federal Income Deduction: 495.79
California State Income Deduction: 335.30

Both paychecks are using 3 for the federal and state exemptions. Can you please help me figure out why those numbers are so much higher for simply another week of work?

  • 1
    Keep in mind that every time you change jobs, you should probably use the IRS' online tax calculator to make sure that you'll actually be okay. Just plug in a few details, and you'll get an estimate and advice for altering your W4, if necessary. – phyrfox Apr 16 '18 at 5:23
36

Since you get paid biweekly, tax withholding is based on multiplying your pay by 26 pay periods a year. Your withholding for the first paycheck was based on the assumption that you’re making $62,000 a year, and for the second, $125,000 a year. Since we have progressive tax rates, the tax is far more than double.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.