If you recently graduated college and just started your first job, please read on…
Some of you have just started your first jobs out of school. In case you didn’t know, with each paycheck you receive a portion is withheld to pay your taxes.
How does withholding work?
Your employer will withhold a percentage of each paycheck based off of your annual salary and what tax bracket you will be in.
For you recent grads, even though you’re starting your job in July or August, the amount withheld on your paycheck will account for the entire year. Long story short, you may be receiving a smaller paycheck than you could be getting.
How do I fix this?
Adjust your withholding.
If you want a larger paycheck throughout the year, tell your employer you would like to adjust your withholding.
Make sure though that you withhold enough so that you don’t owe any money in April.
If you have questions or would like help forecasting this out, feel free to reach out to our team.