Why doesn't ADP withhold enough taxes for w-2?

Question

The company I work for switched to ADP and now I owe an extra 7% at tax time even though I CLAIMED ZERO DEPENDENTS!!! Why did ADP do this to me?
There is nothing weird about my taxes, just a straight hourly with no OT or bonus pay.

Answer 1

As others has already indicated, it is possible that they made an mistake. Fill out another W-4 with 0 exemption allowance with your HR or payroll.

It is also possible that when your company switched to ADP, they didn't transfer the data from the old payroll company. So the first dollar you made with ADP payroll system is back to 10% marginal tax rate rather than accumulated over the entire year. Essentially, you have some income that were taxed in a lower rate than they should.
You can really easily check this out by looking at your first paycheck stab from ADP to see if the YTD withholding started from $0.

Sorry this happened to you.

Best wishes.

Answer 2

You need to check with ADP and see if they entered the right amount of exemptions for you. If they did then you need to have them take a little extra eack week to make up what you have to pay at the end of the year. It may just be that the person entering the information being human like us made a mistake.

Answer 3

You need to check with your payroll department and see what they're basing your withholdings on. If you're claiming Single and zero then you would normally expect a fairly large refund unless there's something you're not telling us about your situation, such as being married, or being claimed as a dependent by another taxpayer, or significant other income not subject to withholding such as dividends or interest, etc.