State Agencies Bulletin No. 222

Subject
Changes in Federal Income Tax Withholding Tables and Earned Income Tax Credits for the Year 2001
Date Issued
December 22, 2000

Purpose

To advise agencies of increases in withholding allowances

Affected Employees

All employees

Effective Date

Immediately 

Background  

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.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.