International Finance
Sector Insight

Employees want more money in each paycheck instead of a large tax refund

According to the IRS, the average tax refund in 2016 was $2,860.

Forty-eight percent of employees in America want a bigger paycheck rather than a larger tax refund, according to findings of the “Getting Paid In America” survey. The survey was conducted by the American Payroll Association for National Payroll Week, September 4-8.

During National Payroll Week, the APA encourages employees to make smart decisions on how they’re paid. Small changes such as adjusting Form W-4 can make a significant impact on the amount of an employee’s take home pay.

“Make sure your withholdings on your Form W-4 are at the proper level,” encourages Frank Tresnak, business development manager for Symmetry Software. “Some say they want a bigger refund to pay bills, but getting more money each paycheck lets you pay your bills faster and pay less interest as well.”

According to the IRS, the average tax refund in 2016 was $2,860. Forty-eight percent of respondents indicated they would rather receive an extra $110 in each bi-weekly paycheck than a large tax refund. When asked in a follow-up question why they prefer more money in each paycheck, thirty-seven percent of survey participants indicated they do not wish to give the government an interest-free loan. An additional thirty-four percent indicated they need the extra money for living expenses, like rent and food.

The “Getting Paid In America” survey is conducted annually during National Payroll Week (NPW) by the American Payroll Association. More than 34,000 employees responded to the 2017 survey, providing insight into various payroll and time and attendance trends impacting the workplace.

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