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Why Federal and State Taxes Weren't Withheld
Why Federal and State Taxes Weren't Withheld
Brooke Fleming avatar
Written by Brooke Fleming
Updated over a week ago

Overview: Understanding why income tax might not have been withheld from your paycheck is essential for taxpayers. Several factors could contribute to this, including changes in tax guidelines, exemptions, federal and state tax laws, and possible payroll errors. Here we offer insights into common reasons for having no income tax withheld from your payroll checks, along with steps to address and prevent such occurrences in the future.


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Reasons Why Taxes Weren't Withheld

When reviewing your pay stubs, it is important to take into account the following:

  1. You Didn’t Earn Enough:

    • Changes in W-4 guidelines may result in no income tax withholding for employees earning below a certain threshold.

    • Factors such as pay frequency, dependents, and filing status affect withholding calculations.

  2. You Are Exempt from Federal Taxes:

    • Employees who declare themselves as "exempt" on the W4 form will not have federal income tax withheld.

    • Review your W4 form in the Buddy Punch system to ensure accuracy and update if necessary.

  3. You Live and Work in Different States:

    • Working remotely or in a different state than your employer can complicate state income tax withholding.

    • Consult a tax professional or review state tax laws for guidance.

  4. There’s No Income Tax in Your State:

    • Some states do not impose income tax, relieving taxpayers of this obligation.

    • Verify your state's tax laws for any other applicable taxes, such as dividends or interests.

  5. There Has Been a Payroll Error:

    • Payroll errors, such as incorrect data entry or address issues, can result in missed income tax withholding.

    • Promptly contact the Buddy Punch team at [email protected] if you suspect a payroll error.

Why It's Important to Monitor Your Taxes

Maintaining accuracy in tax-related documentation, seeking professional guidance when necessary, and vigilantly monitoring tax withholding can help individuals navigate the complexities of tax compliance with confidence. Remember, staying informed and proactive is key to minimizing tax-related challenges and ensuring smooth financial management throughout the year.


Q: How much income is required to file federal taxes?

A: The minimum income threshold varies based on filing status and age. Review IRS guidelines and tax brackets for specific federal thresholds.

Q: What if I am unsure about filling out my W4 form correctly?

A: Visit the IRS website or consult a tax professional for assistance in completing your federal or State W4 form accurately.

Q: How can I prevent tax issues in the future?

A: Ensure your address, SSN, and DOB are correct in the Buddy Punch system, review your W4 forms for accuracy, and monitor tax withholding on your paystubs regularly. Promptly address any discrepancies or errors to avoid confusion during tax season.

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