*headdesk*

[rm]

I used to get paid twice a month and my takehome was a consistent amount.

We switched to once monthly, and I figured it would be doubled, but no, there was an extra $250 tax hit.

Do I change my withholding or will this sort itself out when I don't get paid again for a month?

Comments

[hodsthorn.livejournal.com]

I wouldn't count on it getting sorted out in the short-term; this is one of those "it'll all come out in the laundry/ tax-time" types of things.

I went through something similar at a job about ten years ago. If this is, in fact, the same problem, what's going on is that the tax withholding is a myopic and automatic system--it only looks at your current paycheck, and an arbitrary amount is taken out on the assumption that this is what you get paid all the time (i.e., on a biweekly basis). So you're now losing taxes at a greater rate because, as far as the bureaucracy is concerned, you just got your salary doubled.

Of course, since you didn't, the overage will be returned to you next April--but in the meantime, the only way to offset the problem is, indeed, to change your deductions so that less is taken out.

Of course, I'm not actually any good at this stuff--you might want to talk to whoever's in charge of personnel before making a change so you don't overdo the withholding and end up owing money at the end of the year. Good luck!