03-P-046 New Federal Withholding Tax Tables (Supersedes 03-P-022)
|DATE:||June 3, 2003|
|SUBJECT:||New Federal Withholding Tax Tables|
|EFFECTIVE DATE:||July 1, 2003|
|CONTACT:||Roger Basinger||(785) firstname.lastname@example.org|
|SUMMARY:||New Federal Withholding Tax Tables Effective for Paychecks Issued On or After July 1, 2003.|
Due to the new federal tax legislation signed into law on May 28, 2003, the Internal Revenue Service (IRS) has issued new federal percentage tables for computing the federal withholding tax deductions. In addition, the new legislation instructs employers to reduce the supplemental flat withholding rate from 27% to 25%. Finally, the value for one withholding exemption increases from $3050.00 to $3100.00 per year. Employers are encouraged to use the new tables as soon as the tables can be worked into their payroll systems, but not later than July 1, 2003. The Division of Accounts and Reports Payroll Systems Team will implement the changes listed above effective with the pay period beginning June 8, 2003 and ending June 21, 2003, paid July 3, 2003.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2003. When calculating federal withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
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 tables and supplemental wage withholding rate in their respective payroll systems for paychecks issued on or after July 1, 2003.
Attachment: Schedule A