Take Time to Do a Paycheck Checkup

Underwithholding or overwithholding taxes is a risk most people in the United States face, and if you work two or more jobs, there is an increased chance that your employers may not be withholding the right amount of tax from your paycheck. If you don’t catch any issues you may have, you will either not bring as much of your hard-earned money home as you should from each paycheck, or you will need to pay more than you anticipated when you file your next tax return.

Fortunately, you don’t need to wait until tax season to find out if there are any issues with your withholding. The IRS website offers a Withholding Calculator for taxpayers to use to perform a simple and effective paycheck checkup for themselves.

The Withholding Calculator is able to accurately check through your payments, income, credits, adjustments, and deductions to make sure your tax withholdings are correct for the job(s) and hours you work. In order to take advantage of this tool, you should have a copy of your most recent tax return and a recent pay stub with you.

Even if you work one job and haven’t encountered any issues with your withholding in the past, it’s always a good idea to check and make sure you’re still on the right track, especially if you are self-employed or have recently had any significant life events. Purchasing property, getting married, and having a child are just a few of the circumstances that will affect the way your tax withholding should be calculated.

Don’t hesitate to reach out to a professional if you need additional support. We at Ryder & Company are happy to help with any tax and financial planning questions you may have.

Ryder & Company is located in West Lawn, PA and offers a variety of accounting services, part-time CFO services, payroll preparation, and much more! We also offer tax preparation for individuals, as well as businesses and nonprofit entities. We assist many individuals and businesses in and around Wyomissing, Exeter, and Reading.

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