As you may or may not remember, Marty was shorted on his paycheck this past Saturday. (His actual pay date is today, but it is in our bank Saturday.) It turns out, it is all Dave Ramsey's fault.
Just kidding... kind of. One of the first things we did when we started listening to Dave Ramsey was change our number of exemptions on Marty's W-4. Using the IRS Withholding Calculator we determined that Marty could claim 12 exemptions (!!) but we decided to claim 10.
Apparently, there is a part of the tax code that says that if you claim exempt from taxes, they take something out once a year, just in case. Because we are one of .01% of the company that claims any exemptions, the payroll software wasn't able to recognize our situation, and tossed him in with the group that claims exempt. So... he has a call in to the head of the payroll department to fix it.
The funny thing is... I am so set on "We won't spend the BEF" that when this happened it never even dawned on me that we have the BEF to make up the difference, if needed.
2 comments:
We've gone over and over this issue with our HR department! We are currently claiming 13 and still get >$4000 back each year! I don't get it! And now, we've got a bonus coming, and HR is telling us that legally, they HAVE to take 25% of it for taxes! Gag! Why does the government get to earn interest on my money??
I'm glad you guys got the missing $300 worked out!
Anne
P.S. The Calculator is down! ;o(
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