Federal Income Tax Withholding Amounts Change For Many On July 1
New federal income tax withholding tables, prescribed by the Department of
the Treasury, may reduce the amount of income tax withheld from your wages
paid after June 30, 2001.
The reductions in tax withholding are the result of tax cuts mandated in the
Economic Growth and Tax Relief Reconciliation Act of 2001 for those in the
current tax brackets of 28 percent and above. The reductions become effective
July 1, 2001.
If you do not want to have your withholding reduced, you may want to file
a new Form W-4, Employee's Withholding Allowance Certificate, with the Payroll
Department. You may claim fewer withholding allowances on line 5 or request
additional amounts to be withheld on line 6.