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John F. Garrity, CPA, PC
Certified Public Accountants

 

Change in Federal Withholding Tables
 
President Obama recently signed into law the American Recovery and Reinvestment Act of 2009. By implementing this new act, many employees will automatically see a reduction in their federal income tax withholding. You do not have to submit a Form W-4 (Employee’s Withholding Allowance Certificate) to get the automatic change.
 

For some employees, this change could inadvertently cause under-withholding of federal taxes. Employees with multiple jobs and dual wage households should review IRS guidance or consult a tax professional to determine whether they are withholding appropriately given the new tax law change. IRS Publication 15T provides this guidance. This publication can be found at the IRS website: www.irs.gov/pub/irs-pdf/p15t.pdf. If you are concerned that this change to the tax tables will result in an under-withholding of you federal income taxes, you may want to update your W-4 Form with your employer. Please remember, a decrease in the number of exemptions you claim will increase your federal income tax withholdings.