Friday, June 3, 2011

How do you adjust withholdings on your pay check?

I am a recent college grad who just accepted a job. I received a signing bonus, but 40% was taken out for tax. My job startes in August, so I would like to adjust my withholdings to make my paycheck bigger to compensate for the tax that I already paid through my bonus. What is the best plan of action?How do you adjust withholdings on your pay check?Determine your gross salary and adjust withholding so that at the end of the year you are even . No interest free loan for the government and you use your money all year long.How do you adjust withholdings on your pay check?talk to your company's accounting dept., if you have one. (If not, try the administrative assistant or HR department.) I believe it's the W-4 form that lets you adjust this allowance.How do you adjust withholdings on your pay check?You might need to talk to a financial planner to see how to reduce your tax liability.How do you adjust withholdings on your pay check?You can pick up a W4 form from your human resources department and re-do your percentages and additional amounts that you want changed. Also the more dependents you are able to claim, the less the IRS will take out of your check BUT in doing that, you may end up owing taxes at the end of the year. If still in doubt, you should be able to find a CPA in the area who can give you some advice based on your own personal situation.How do you adjust withholdings on your pay check?go to your HR department and fill out a new W-4How do you adjust withholdings on your pay check?It will depend on the amount of allowances you claim on your W-4's. For each allowance you claim, they will deduct 3300 divided by the number of pay periods in a year from your check. For instance, if your pay is biweekly, 3300/26=$126.92. They will take the remaining amount from the check depending on how much you make. If you are single, and on a biweekly pay, generally it's 10% up to $385 then 15% up to $1240 and then 25% up to $2817. You can claim as many allowances as you like, and have none withheld at all, but just note that 90% of your tax due must be paid by year's end by withholdings or estimated payments.

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