09-P-025 Revised 2009 Percentage Method Tables for Federal Tax Withholding and Advance Earned Income Credit Payment Tables (Supersedes 09-P-015 and 09-P-016)

DATE:	February 27, 2009
SUBJECT:	Revised 2009 Percentage Method Tables for Federal Tax Withholding and Advance Earned Income Credit Payment Tables
EFFECTIVE DATE:	March 20, 2009
CONTACT:	Jennifer Holthaus	(785) 368-6313	jennifer.holthaus@da.ks.gov
APPROVAL:
SUMMARY:	Revised Federal Withholding Tax Tables and Revised Advance Earned Income Credit Payment Tables Effective for Paychecks Issued On or After March 20, 2009

The Internal Revenue Service (IRS) has issued revised tables for the percentage method of withholding and advance earned income credit (EIC) payment tables for 2009. These tables were revised due to changes to the tax law made in the American Recovery and Reinvestment Act of 2009. The attached tables are to be used in computing federal tax withholding and advance EIC payments for wages paid on or after March 20, 2009. As a reminder, in order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.

Employees are not required to complete a new Form W-4 for Federal withholding. The revised tables were developed to apply for withholding for all employees and to take into account all current tax provisions. Also, employees are not required to complete a new Form W-5 for Advance EIC payments.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes and advance EIC payments for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates and advance EIC payments in their respective payroll systems.

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Attachments: Revised Tables for Percentage Method of Withholding pdf

Revised Tables for Advance EIC Payments pdf