Purpose

To advise agencies of increases in withholding allowances

Affected Employees

All employees

Effective Date

New rates will be reflected in the Administration checks dated January 5, 2000 and Institution checks dated January 13, 2000.

Tax Tables

The value of a withholding allowance has been increased to $53.85 weekly, $107.69 biweekly, $233.33 monthly and $2,800 annually. PeopleSoft uses the annual tax tables published in Circular E. 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 https://www.irs.gov/ to view this publication.

Advance Payment of Earned Income Credit

In 2000, employees whose earned income is less than $27,413 may be eligible for the advance payment of the Earned Income Credit (EIC), with a maximum credit of $1,412. The new 2000 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

Question regarding this bulletin may be directed to the Payroll Deductions mailbox.