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Survey Reveals Correlation Between Form W-4, Higher Wages Each Payday
[September 30, 2022]

Survey Reveals Correlation Between Form W-4, Higher Wages Each Payday

SAN ANTONIO, Sept. 30, 2022 /PRNewswire/ -- Fifty-two percent of employees that filled out a Form W-4 in 2021 increased their take-home pay each paycheck according to results from the 2022 "Getting Paid In America" survey conducted by the American Payroll Association (APA) during National Payroll Week.

The annual APA survey asked, "Did you complete a new Form W-4, Employee's Withholding Certificate, at any point in 2021?" Approximately 12,314 respondents, nearly 46 percent, selected "yes," indicating that they completed a Form W-4 in 2021. Of these "yes" respondents, 52 percent indicated they received a lower tax refund in 2021, which means that those employees had increased their take-home pay rather than letting the federal government hold onto their money until tax refund time.

"Many Americans are overpaying their taxes every payday," said Dan Maddux, executive director of the APA. "By making adjustments to your Form W-4, they can boost their take-home pay and give themselves an instant raise, making it easier to afford higher expenses many Americans are experiencing."

In 2020, the federal Form W-4 was updated for the first time in over 30 years. The form no longer uses alloances to account for likely tax deductions, instead requiring employees to provide dollar amounts. When an employee withholds too much from their paycheck, they will receive a larger tax refund. When an employee makes adjustments to withhold closer to their tax liability each payday, they should receive a smaller tax refund and as a result more money each paycheck.

On its National Payroll Week website, the APA offers educational resources and tools to help employees better understand how to maximize savings from their paychecks. One of these tools, the IRS's Tax Withholding Estimator, helps employees determine how much they want their employer to withhold from their paychecks.

The "Getting Paid In America" survey was held in conjunction with the APA's annual public awareness campaign National Payroll Week, September 5 – 9. Over 29,100 individuals responded to the survey, providing insight into how individuals are paid in America. For complete survey results, visit

The APA is the nation's leader in payroll education, publications, and training. Visit the APA online at

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SOURCE The American Payroll Association

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