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[QUOTE][i]Originally posted by Clint in Wichita [/i]
[B]The way I understand it, these checks represent a tax cut retroactive to Jan. 1.
Once the checks are cut, our paychecks should increase...unless the govt. plans on cutting 100 million checks every 6 months.
I may have been wrong about the cut, but it remains to be seen if it actually pans out the way Bush claimed it would during the debates.
If spending isn't decreased, the cut won't matter much because the economy will nosedive like it did in the 80s.
It's lunchtime, so this reply may or may not get through!:rolleyes: [/B][/QUOTE]
Clint, that is not likely how it will work dependinging on your company. Most companies payrolls are computerized, they realize that if they continue to withhold at the current rate you will just pay less or receive a greater refund next spring and will not likely spend the money to alter their payroll systems until the end of the year when they would do it anyway.
So, if you want to see a greater net for the remainder of the year your best bet is to alter your exemption deductions increasing them by 1 which should account for the total change for the rest of the year(try to contact your payroll depart to confirm that they will or will not be instituting the new rates in their payroll software first). If you do this you should be positioned for the same refund or payment as last year provided there has been no significant change in your yearly earnings, while increasing your net on each paycheck for the remainder of the year. Next year you would want to change back your exemption deductions so that when your company changes the payroll software you will have the right amount deducted.
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