SUBJECT:	Revised Federal Tax Tables for 2009
DATE:	April 6, 2009

 

As a result of the American Recovery and Reinvestment Act (ARRA), a component of the new economic stimulus package, the 2009 Federal tax tables have been revised. The details of the changes are noted below. Please distribute to staff members within your department so all will be aware of the changes.

How Does the Change Affect Employees?

• Some employees will receive reductions in the amount of federal tax withheld from their salaries. The threshold is based upon marital status for tax purposes and income levels.
• Employees who are Nonresidents for US Tax Purposes will have additional withholding based upon the new federal tax changes.

When will the change be effective?

• The changes for all biweekly employees are included in the payroll checks/vouchers dated April 10, 2009.
• The changes for all monthly employees are included in the payroll checks/vouchers dated April 24, 2009.

How can I make sure I have enough withholding for calendar year 2009?

• Individuals who are receiving reduced amount of federal tax withholdings from their individual payroll checks/vouchers may elect to consult with their tax advisors to ensure no revised W-4 forms are necessary for the current calendar year.
• Employees who have more than one job or who claim married may choose to submit a new IRS Form W-4 to claim fewer allowances or invoke additional withholding. You can process these changes using the work.duke.edu website.
• Specific questions regarding your individual withholding should be directed to your tax advisor.

In addition, you may reference the link to the IRS website for additional information including the IRS Notice to Employees within Publication 15-T, the details of the regulatory changes, and the latest Withholding Tax Tables for your income bracket.