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Extra Federal Tax - Prorate for partial paycheck?

Need help ASAP. An employee is set up to have an additional $2K withheld in federal per bi-weekly paycheck and is being terminated and only getting 3 days pay in his last check. The $2K is wiping out his whole net pay. Are we supposed to prorate the extra fed tax??


  • d26k
    d26k ✭✭✭
    edited October 2019

    Follow WHATEVER is on the last valid W4, regardless of the net pay. Employer has no ability to factor in their "feelings"... W4 is black and white instructions from the employee you MUST follow.

  • Dumb question. Who gave the order to withhold extra money? The employee or the government?

  • Not a dumb question David, but a good point. In addition, be careful if the employee is being terminated three days into the semi-monthly pay period - State wage and hour laws may require that the employee be paid sooner than the regular semi-monthly pay date. In some cases the employee must be paid at the time of termination.