Employee Benefits

The IRS issued Publication 15-T, regarding the new withholding tables designed to accelerate the benefit of the "Making Work Pay" tax credit passed under the American Recovery and Reinvestment Act of 2009, effective February 17, 2009.  The Publication formalized the IRS position that the new withholding tables are to apply to pensions in addition to wages.  Governmental plans should be aware of the impact of the new tables on two separate groups: (1) employees receiving wages under the plan's payroll, and (2) retirees and/or their beneficiaries receiving monthly benefit payments from the plan.  The IRS asks that the new tables be implemented as soon as possible but no later than April 1, 2009.