Federal income tax withholding is determined by the elections made on an employee's W-4. If an employee believes their federal taxes are not being withheld correctly, it is recommended that they review their W-4 to confirm their filing status and selections are accurate.
Why Federal Income Tax May Not Be Withheld
Federal income tax is not deducted from a paycheck if the employee's earnings fall below the withholding threshold for that pay period. This threshold is not a fixed amount; it varies based on the filing status and elections the employee selected on their W-4. If earnings were below the threshold for a given pay period, no federal income tax will be withheld from that paycheck, even if the employee expects a deduction.
Review and Update a W-4 in Playground
If edits to a W-4 need to be made, employees can regenerate and sign them directly in Playground. To do so, they should follow the steps below:
Navigate to the Payroll tab in Playground.
Select Edit Information.
From there, click Tax withholding -> Federal W-4 -> Regenerate Form & Sign.
💡 We recommend employees review their W-4 carefully to ensure their filing status and withholding elections reflect their current tax situation. Changes made to the W-4 will affect withholding on future paychecks.