The Central Payroll Bureau is using new federal tax tables in accordance with the American Recovery and Reinvestment Act of 2009. These tax tables reflect a tax credit in the form of reduced withholdings of up to $400 for individuals and up to $800 for married individuals per tax year. The reduced withholdings were automatically included in applicable regular employee paychecks beginning March 18 and will be included in applicable contingent employee paychecks beginning March 25.
It is not necessary to submit a W-4 to get the automated withholding change. However, an employee with multiple jobs or married couples whose combined incomes place them in a higher tax bracket may elect to submit a revised W-4 to ensure enough withholding is held to cover the tax for his or her combined income.
More detailed information on the tax withholdings is available on the Central Payroll Bureau Web site at
{http://compnet.comp.state.md.us/Central%5FPayroll%5FBureau/Payroll%5FOfficers/News%5Fand%5FInformation/}.
