1. I live in PA and work part time with a firm at NJ. Payroll has been deducting NJ SDI, NJ SUI and PA SIT (besides Fed Income, Soc Sec and Medicare). Are they correct in their deductions ?
2. I assume the higher the Personal Allowance points in the W 4, the less is the tax withheld by the Company ? Is this assumption correct.

Thanks
Leah

1. Your employer is withholding the correct taxes. Because you are working in NJ, they should withhold NJ SUI & SDI.

2. Your are correct, the more exemptions you claim the withholding tax will be less.