| Recently the IRS issued updated withholding tables
to implement the withholding adjustments required by the American
Recovery and Reinvestment Act of 2009. The new Wage Withholding
and Advance Earned Income Credit Payment Tables were implemented
for the State of Kansas effective for paychecks issued on or after
March 20, 2009. Refer to informational circular 09-P-025 issued
on February 27, 2009 http://www.da.ks.gov/ar/infocirc/fy2009/IC09p025.htm
to view the revised tables.
The IRS has subsequently issued additional information encouraging
employees in certain categories to review their withholding to determine
if enough tax is being withheld. Please provide the following information
to your employees and encourage them to seek advice from their personal
tax accountant or to visit www.irs.gov
to utilize the on-line withholding calculator to determine if it
is necessary to file a revised W-4 to ensure adequate wage withholding
to meet their estimated income tax liability. State of Kansas Payroll
and Human Resources staff members cannot make recommendations to
individual employees regarding personal income tax withholding.
Employees can revise their Federal W-4 withholding allowances or
request an additional Federal withholding amount via the Update
W-4 Federal Tax Data page in Employee Self Service www.kansas.gov/employee.
Below is a summary of information per the IRS website:
In 2009 and 2010, the Making Work Pay provision of the American
Recovery and Reinvestment Act will provide a refundable tax credit
of up to $400 for working individuals and up to $800 for married
taxpayers filing joint returns.
This tax credit will be calculated at a rate of 6.2 percent of
earned income and will phase out for taxpayers with modified adjusted
gross income in excess of $75,000, or $150,000 for married couples
filing jointly.
Wage earners will benefit immediately with a larger paycheck as
a result of the changes made to the federal income tax withholding
tables to implement the Making Work Pay tax credit. Some individuals
may find that the changes built into the withholding tables result
in less tax being withheld than they prefer.
Depending on your personal situation, you may have less withheld
from your paycheck than you need or want. If you believe your current
withholding is not appropriate for your personal situation, you
can perform a quick check using the IRS withholding calculator which
can be found at: http://www.irs.gov/individuals/article/0,,id=96196,00.html.
Adjustments can be made by filing a revised Form W-4, Employee's
Withholding Allowance Certificate, with your employer.
The following groups should check their withholding to see if
enough is being withheld:
- Individuals who work two or more jobs,
- Married couples who both work,
- Pensioners,
- Dependents who work but who are not eligible for the making
Work Pay tax credit due to their dependent status, and
- Non-resident aliens, and some resident aliens, who do not have
valid Social Security numbers and who are not eligible for the
credit.
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