Sounds like your employer may have reverted to pre-Bush taxcut withholding when Congress failed to act last year. If so they will have to correct that. CNBC did a piece that said withholding for someone making $60K went down $4 on a biweekly basis due to inflation adjustment of tax brackets. However, FICA went up $45 due to expiration of the temporary payroll tax reduction passed in 2010. Which prompts me to ask, are you really talking about income tax withholding or are you talking about total deductions including FICA?

I called the payroll department and asked them about this. My federal tax withholding went up about $45. My FICA tax went up about $35. I was expecting FICA to go up, not Fed tax.

She told me the IRS released new tax withholding tables and that they increased withholding rates at all levels.

If I can find a link she sent me, I'll post it. That link was to something on the IRS site.