How to Change Payroll Deductions

Use the appropriate form to request a payroll deduction change.

Payroll deductions are either statutory or voluntary. Statutory means that the deduction is legally required; voluntary means that you agreed to it. You can change the terms of certain statutory deductions, but others you cannot change at all. Even though it's possible to change voluntary deductions, you may have to wait for a specific time frame to do so.

Things You'll Need

• Form W-4
• State income tax form

Instructions

1. Complete a new W-4 form if you want to change the terms of your federal income tax withholding. Federal income tax depends on your exemptions, filing status, income and the IRS withholding tax tables; therefore, you can change certain factors such as filing status and exemptions. For instance, if your existing W-4 shows three dependents but you now have four, indicate four dependents on the new W-4 and submit it to your employer.

2. Ask your employer for your state income tax form if you want to change your state income tax withholding. The procedure is similar to completing a W-4 form, except that you must use the income tax form relevant to your state. Your state income tax withholding depends on your state’s withholding tax tables. Make the necessary changes, such as filing status or exemptions, and submit the state income tax form to your employer.

3. Change voluntary deductions according to company regulations. This step varies by deduction and employer. Voluntary deductions include health benefits, life insurance, parking fees and retirement contributions. The employer may require you to submit a written request, or via email or standard company form.

   Generally, you have to wait until open enrollment to stop or change medical deductions. If you are adding a dependent to your health plan, such as a spouse or child, you often have to wait until open enrollment to make the change, unless a qualifying event has occurred such as birth of a child, marriage, divorce or job change that impacts coverage.

Tips & Warnings

• Social Security and Medicare taxes cannot be changed. Your employer must deduct them at the flat percentage that the federal government sets. You also cannot change wage garnishments or child support, which are either court-ordered or initiated by a federal institution, such as the IRS. The employer must make the deduction according to the garnishment notice. If you appeal the garnishment successfully or win a hardship claim, the employer cannot stop the deduction until the issuing institution instructs it to.

References

• University of Minnesota: Deduction Descriptions
• IRS: 401(k) Plans
• Public Employees Benefits Board: Info Center
• State of Georgia: Employee's Withholding Allowance Certificate