Taxes are based on your fullyear extrapolated earnings. You will be taxed asif you made 40k all year. It is actually based on each pay periodu2019s earnings.However you will get the overage back after you file taxes for the year.You might ask your payroll administrator how to adjust your IRS paperworkW4 so that isnu2019t the case. Just remember to change it back next December soyou donu2019t have a shortage in 2023 taxes.