Why am I paying more tax than others? ?

Question

So I got my first job (part-time) and just got my full week paycheck.
At $17.25 an hour at 20 hours a week I would get $345 before tax.

I tried using the online California paycheck calculator and estimated to get $314 but ended up getting $274 after tax on my direct deposit.

At first I thought okay maybe that’s how taxes work. But then I asked several of my co workers how much they made and said they got $300 after tax. (They all work the same hours/no dependents/ benefits) They too were surprised at how significant the tax deduction was on my paycheck

This is what my pay statement looks like.
If someone can explain what each tax deduction is for I’d really appreciate it.

L · Answer

You are paying more because you are single.

RICK · Answer

you filled out your W4 different  than they did

? · Answer

Depends on how you and they filled out W4.  Might be different.  Nothing looks amiss about yours.

Amy · Answer

You are paying more tax than your co-workers because you filled out your W4 differently. Maybe you said that you have another job, or maybe your co-worker is married.

Social Security tax and Medicare tax pay for those programs. CA SDI is insurance against disability. They are fixed percentages of your wages. 
Federal and CA income tax help fund the rest of the government. They are based on how much you earn each year.

Because you don't know yet how much you will earn in total during 2020, the amounts that your employer withholds are only estimates. Form W4 gave them some of the information that affects your tax besides salary. 
In January you will receive a form from your employer that totals your wages and tax paid for the year. You can then do the real calculation of how much tax you were supposed to pay to each of the federal and state governments. If you overpaid - which you probably did for federal - you ask for a refund of the overpayment.

A Hunch · Answer

Do not pay attention to Elaine & Stephen:

1. Elaine - doesn't know the difference between a W4 and a W2.
2. Stepen & Elaine don't know that the W4 changed in 2020 and you no longer specify allowances.

This isn't your first paycheck, because the YTD shows, you have a previous paycheck.

When you completed your W4, did you specify that you had multiple jobs, other income, or additional withholdings?
Based on this check, your FIT should be about $10.81, unless you incorrectly completed the W4.

Your deductions are VERY self explanatory.  Have your parents teach you or google.

Elaine M · Answer

Ask the finance person where you work.  Did you sign up for 1 withholding or 2 or 3 on your W2?Everything taken out of your check will be listed.

StephenWeinstein · Answer

The only one that looks unusually high is federal income tax.  If you want less federal income tax to be taken, you can submit a new W-4 claiming more allowances.  If you claimed enough allowances so that no income tax (no federal income tax and no state income tax) was withheld, then you would get about $315 per paycheck.

However, if you don't need the money urgently, you could just wait, because any extra federal income tax withheld will automatically be given back to you after you do your tax return.  (What you get back is the total withheld for the you minus the amount that the government keeps.)

All of the others are within one penny of what they should be.

Social security tax is 6.2% for everyone and is mostly used for paying benefits to retirees.

Medicare tax is 1.45% for everyone and is used for healthcare for those who are over 65 or have kidney failure.

CA State income tax is used for the state government.  The percentage is not the same for everyone, but it looks about right.

CA SUI/SDI tax is 1% for everyone working in California and is used for disability benefits.

Also, it says you were paid for 20.09 hours (20 hours, 5 minutes, and 24 seconds), not 20 hours, so you were paid $346.55 before taxes, not $345.

Why am I paying more tax than others? ?

7 Answers