I recently changed my Federal withholding from married/0 exemptions/ $150 extra per paycheck to married/4 exemptions/$0 extra withhold.
And lo and behold, my MA withholding went up by almost $20.
Nothing else changed - my gross pay, my deductions, pre-tax stuff, all of these amounts are the same. The only thing different between the two checks is that my Federal withholding went down (as I desired) and MA went up.
Can anyone explain why?
My company's payroll department could only tell me that "lower Federal withholding causes higher state withholding", which makes no sense because there is nothing about MA income tax that is dependent in any way on how much you pay in Federal income tax (as far as I know).
Thanks!