In late February, President Obama signed into law the American Recovery and Reinvestment Act of 2009, sometimes referred to as the stimulus plan. One of the key provisions of the Act is a change in the federal income tax withholding tables. For most taxpayers, the change in the withholding tables will result in less federal income tax withholding from their paycheck, resulting in more take-home pay each pay period.
Heartland will implement this change in the federal income tax withholding tables with the March 13, 2009 paycheck. This change is automatic and no action is required on your part. The increase in your take-home pay will depend on your individual circumstances, e.g., your pay, your marital status and the number of withholding allowances you are claiming. Higher-income taxpayers will see little or no change in their take-home pay.
If for any reason you do not want to have your federal income tax withholding reduced (e.g., you are married and your combined income places you in a higher tax bracket), you may want to complete a new Form W-4, Employee’s Withholding Allowance Certificate. You may claim fewer withholding allowances on line 5 or request additional amounts to be withheld on line 6. Please consult your tax advisor regarding your personal situation. If you have any questions, contact Jami Johnson at ext. 14311 or Steve Jordan at ext. 14908.
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