|Subject:||1999 Changes in Federal Income Tax||Bulletin No. 65|
Federal Income Withholding Tax tables have changed effective in Administration checks dated January 6, 1999 and Institution checks dated January 14, 1999. The value of a withholding allowance has been increased to $52.88 weekly, $105.77 biweekly, $229.17 monthly and $2,750.00 annually. PeopleSoft uses the annual tax tables. A copy of the tax tables will be sent with a copy of this bulletin in a separate mailing. To request a copy of the Circular E, Employers Tax Guide, contact the IRS at the toll free number 1-800-829-3676.
ADVANCE PAYMENT OF EARNED INCOME CREDIT
In 1999, employees whose earned income is less than $26,928 may be eligible for the advance payment of the Earned Income Credit (EIC), with a maximum credit of $1,387. Copies of the new 1999 tables for calculating the credits will be sent with a copy of this bulletin in a separate mailing.
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.