Who Making Work Pay will hurt this tax season
Your Payroll and Benefits team may be dealing with some disgruntled workers come tax time this year.
Some employees didn’t have enough money withheld from their paychecks last year, as a result of the Making Work Pay tax credit. Result: These employees can end up with either smaller than expected tax refunds — or they could owe the IRS.
Here’s what happened: The Federal tax tables that determine withholding did not account for some of workers whose employment status complicated the tax credit calculation — employees with more than one job, Social Security recipients who still work, etc.
Overall, the Department of the Treasury is estimating that over 10% of taxpayers will end up owing additional taxes.
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