 |
|
|||
|
Date: December 22, 2000 |
Bulletin No. 222 |
|||
|
|
||||
| |
|
|||
|
Date: December 22, 2000 |
Bulletin No. 222 |
|||
|
|
||||
| Subject | Changes in Federal Income Tax Withholding Tables and Earned Income Tax Credits for the Year 2001 |
| Purpose | To advise agencies of increases in withholding allowances |
| Affected Employees | All employees |
| Effective Date | Immediately |
| Effective
Date
|
New rates will be reflected in the Administration checks dated January 3, 2001 and Institution checks dated January 11, 2001. |
| Tax Tables |
The value of a withholding allowance
has been increased to $55.77 weekly, $111.54 biweekly, $241.67 monthly and
$2,900 annually. To request a copy of the Circular E, Employer’s Tax
Guide, contact the IRS at the toll free number 1-800-829-3676 or visit their
website at www.irs.ustreas.gov to view this publication.
The New York State Payroll System calculates taxes based on the annual table. |
| Advance Payment of Earned Income Credit |
In 2001, employees whose earned income
is less than $28,281 may be eligible for the advance payment of the Earned
Income Credit (EIC), with a maximum credit of $1,457. The new 2001 tables
for calculating the credits may also be accessed as indicated above.
Eligible employees must complete a new W-5, Earned Income Credit Advance Payment Certificate each year. Copies of the forms may be obtained from IRS. |
| Questions | Questions regarding this bulletin may be directed to the Payroll Deductions mailbox. |
