Economic Growth and Tax Releif Reconciliation Act - 2001

felicia_matthews

From what I have read, employers are required as part of the Economic Growth and Reconciliation Act (EGTRRA), to make a new IRS notice about the tax decreases available to employees. My problem is, I cannot locate a sample notice anywhere, and am unsure if one even exists or employers are simply required to notify employees of the decreases in any format.
Any help would be appreciated. Thanks.

Cat

I have also been looking for a sample letter. If anyone would share, I would greatly appreciate.

franfields

I would also be interested in a sample.

dhnyct

Aren't the tax reductions included in the updated tax rate schedule in effect after 6/30/01?

System

Below is the notice that the IRS says to give to your employees to tell them about the withholding changes. I couldn't tell whether the IRS is saying you MUST give this notice, or that it's just a good idea. It's from IRS Publication 15-T, which you can find at:
[url]http://ftp.fedworld.gov/pub/irs-pdf/p15t.pdf[/url]

Changes in Income Tax Withholding Effective July 1, 2001

Notice to Employees

Changes in Income Tax Withholding Effective July 1, 2001

New withholding tables may reduce the amount of income
tax withheld from your wages paid after June 30, 2001.

The reductions in tax withholding are due to reduction in the
current 28% and higher tax brackets effective July 1, 2001.

The new tables, prescribed by the Department of the
Treasury, reflect a change resulting from the Economic
Growth and Tax Relief Reconciliation Act of 2001.

If you do not want to have your withholding reduced, you
may want to file a new Form W-4, Employee’s Withholding
Allowance Certificate, with your employer. You may claim
fewer withholding allowances on line 5 or request additional
amounts to be withheld on line 6.

Down_the_Middle

My conversation with the IRS last week on this issue, revealed that the suggested language is recommended for employers to use. It was not mandated that employers provide the info-----only encouraged to do so.