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98-P-010 New Tables for State Withholding Tax for 1998 (Supersedes No. 1138)
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INFORMATIONAL CIRCULAR NO. 98-P-010 |
(Supersedes No. 1138) |
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DATE: |
November 21, 1997 |
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SUBJECT: |
New Tables for State Withholding Tax for 1998 |
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EFFECTIVE DATE: |
January 1, 1998 |
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CONTACT: |
Payroll Services |
(785) 296-3146 |
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APPROVAL: |
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SUMMARY: |
New State Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1998 |
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The Kansas Department of Revenue has issued new percentage tables for computing the state withholding tax deductions effective for all paychecks issued on or after January 1, 1998. The standard deduction for one withholding allowance remains the same at $2000.00 per year in calendar year 1998.
The attached tables have been prepared for use in computing all state withholding tax payments for wages paid on or after January 1, 1998. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
At the present time, the Internal Revenue Service has not released updated tax tables for calculating 1998 federal income tax withholding and/or earned income credit. A separate Informational Circular will be issued when those tables are released.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents Institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1998.
SAM:JJM:CW
Attachment: Schedule A (State Withholding Tax)
