Federal Income Tax Rates
John P. Kruczek, University Controller
The Economic Growth and Tax Relief Reconciliation Act of 2001 was signed into law June 7, 2001. The new law will change the federal income tax withholding rates effective July 1, 2001. This change will not affect employer charges or costs. The change will increase the employees’ net pay, where applicable. An employee’s net pay is a function of the federal income tax table rates, the employees’ gross wages, and employee’s pretax and tax sheltered deductions and the information on Form W-4, Employee’s Withholding Allowance Certificate. Not all employees will see a change in their net pay as a result of this federal income tax table change. Employees may submit a new Form W-4 if they want to maintain the federal income taxes withheld at the present amount.
The new tax table (taxtable.pdf) for the percentage method of withholding for wages paid July 1, 2001 through December 31, 2001 is linked to this memorandum for your convenience. Please direct questions regarding this change to Murphy Miller (mailto:firstname.lastname@example.org) at 392-1231.