|Stimulus tax tables in effect for March 31 paycheck|
The University of North Dakota has implemented the new 2009 “Stimulus” tax tables, effective with the March 31, 2009, paychecks.
The new 2009 income tax withholding tables issued to implement the Making Work Pay Credit (MWPC) may place some taxpayers in a slightly “under withheld” situation by the end of the year. In particular, married couples with both spouses earning wages, individuals working multiple jobs at one time or anyone that is claimed as a dependent on someone else’s tax return may want to adjust their Forms W-4 to have additional withheld.
When you file your taxes, the tax credit that you will receive is supposed to be the lesser of:
(1) $0 for anyone claimed as a dependent on someone else’s tax return OR a non-resident alien
(2) 6.2 percent of earned income OR
(3) $400 for single individuals and $800 for joint filers
Special Note: This credit will be phased out by 2 percent of the modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.
The Payroll Office will be unable to tell you what your federal tax will be for the March 31 check, until pay day. If you would like to estimate your federal tax, prior to pay day, there is a Federal Tax Calculator on the Payroll Web site : http://www.und.edu/dept/payroll/html/calculators.htm . Use the calculator named: Federal Withholding Calculator for CY2009-Effective March 31-2009. This calculator uses the new withholding tables that will be used for the rest of calendar year 2009. This calculator can also be used to provide you with different scenarios, if you would choose to change your W-4.
We recommend that you wait and review your paycheck stub on March 31 and if your wages are the same, then if the difference in your federal withholding between your last check and your March 31 check, multiplied by your number of pay periods remaining in the calendar year is more than your anticipated credit above, you may want to submit a new W-4 to increase your withholding. The W-4 form is located on the Payroll Web site: http://www.irs.gov/pub/irs-pdf/fw4.pdf . You may print it, complete it, and deliver/mail it to the Payroll Office (Twamley 312, or 264 Centennial Drive Stop 7127). -- Payroll.