New tax credit kicks in; paychecks may change

Paychecks may look different for many employees this week because of new tax withholding tables from the IRS.

The new tables reflect the Making Work Pay tax credit—a result of the recently signed American Recovery and Reinvestment Act of 2009.

Eligible taxpayers will receive a tax credit that will automatically be applied in NAU paychecks beginning March 13 and throughout the remainder of 2009. For many employees, the reduced tax withholding will lead to an increase in the net amount of the paycheck.

Employees who do not want to have their withholding reduced (because they have more than one job or are married and the combined income places them in a higher tax bracket) may want to adjust their federal withholding. To submit new W-4 information, log into LOUIE > Self Service>Payroll and Compensation>W-4 Tax Information.

The IRS web site provides more information on the Making Work Pay Tax Credit  including Publication 919, How Do I Adjust My Tax Withholding?