We like Mondays at our work place! Why? Because Monday is payday! But today is a special day for us, because as of April 1, 2009, President Obama's "Making Work Pay" provision of the American Recovery and Reinvestment Act kicks in and that means an increase in take home pay.
I just completed our company's payroll, and all the employees (we have so many LOL) have less federal taxes withheld from their gross wages. Today will be our first paycheck with an increase in take home pay! It's not a huge amount for anyone, but it's better than nothing. We'll take it!
If you are paid hourly instead of a salary, then it may be difficult to know that you are actually now receiving this stimulus benefit. Your employer should be using new updated withholding tables. A lot or most employers use some type of payroll software, and they must update their software with these new withholding tables. Don't hesitate to ask your employer about this, if you feel your federal tax withholding may not be the correct amount!
The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn brought about by the sub prime mortgage crisis and the resulting credit crunch. The $787 billion economic stimulus plan was signed into law by President Obama on February 17, 2009.
Some of the provisions in the plan that have a significant impact on payroll and payroll taxes are "Making Work Pay" tax credits and COBRA premium assistance credit.
The Making Work Pay tax credit provides credit of up to $400 per person ($800 per family) against their 2009 and 2010 taxes. The IRS has released new payroll withholding tables and is asking employers to apply the new tables as soon as possible, but no later than April 1, 2009.
Click the title link for the IRS page on "The Making Work Pay Tax Credit."
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9 comments:
Cool, even if it's only little, at least there's an increase which means the recession will be over soon!
Over soon? I hope so, but don't count on it...maybe in 3 years. I don't think things will ever be the same though in the U.S.
We have been an economy based on our credit card spending and living above our means (not everyone, but a lot of people). Now consumers have wised up and just are not spending like they used to do. What we need is more industry, like manufacturing.
About our little payroll increase, for most people it might fill up 1/3 to 1/2 of their gas gank, unless they have gas guzzlig vehicles!
I'm actually not as optimistic as you are. I don't believe consumers have wised-up, or will wise-up, at all.
Just, they're probably a bit c(redit)-blocked now, where they weren't so before.
:o(
@Pwn Star...nice to see you commenting here! Thanks! And yes, I'm afraid you are right. I'm really NOT as optimistic as I sound, I guess I just hope things get better.
If US will be down for 3 years, so is the rest of the world. Well, not exactly the rest of the world but a lot of countries! My country included LOL.
Cant help but see the irony that companies are either reducing or withholding pay increases knowing the goverment is cutting taxes. So they figure the pay increase this year should be on the goverment and they wont include any pay increases in salaries for many this year. Thanks Obama from the big corperations and the lil guy. My pay raise this year came from you and my coperation kept their money.
@Jules, you are so right! But don't you dare complain, or you might hear "well just be thankful that you have a job."
Nice information in the blog. Money is everything. This is the slogan of every people nowadays. In order to keep things smooth, people have to be paid what they desire for their services. Being timely and accurate at the salary is the key to the satisfaction and 100% throughput from the workers
Regard
Jimmie Menon
payroll services in guelph .
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