Update Your Payroll Tax Tables by April 1
To Comply With Stimulus Bill's Tax Credit

Dear DDMS Customers:

Tuesday, March 17, 2009 — There is a Making Work Pay Tax Credit in the Stimulus bill signed into law Feb. 17, which requires U.S. employers to implement new IRS federal tax withholding tables no later than April 1, 2009.

Action Required

To reflect these tax changes, you must update the affected withholding amounts on your (L4) Federal Payroll Tables screen by Wednesday, April 1. To assist DDMS customers, we have published updated instructions on Setting (L4) Federal Payroll Taxes for 2009 on our Web site
(www.DDMS.com/Resources/Support/faq/accounting/payFedTax09.pdf).

If you live in a state that follows the federal tables, your state withholding tables may also change.You are responsible for researching your own state tax withholding amounts. Please consult your state resources.

After completing these steps, your next Payroll run should reflect bigger take-home pay for employees who meet the revised withholding limits.

Additional Resources

The U.S. Internal Revenue Service released the revised federal tax withholding tables in IRS Publication 15-T, “New Wage Withholding and Advance Earned Income Credit Payment Tables (For Wages Paid Through December 2009),”
(www.irs.gov/pub/irs-pdf/p15t.pdf).

For additional details about the Making Work Pay tax credit, the employer deadline, and related tax forms, see "New Withholding Tables Now Available on IRS.gov; Most Workers Will See Bigger Paychecks this Spring" on the IRS.gov site.
(www.irs.gov/newsroom/article/0,,id=204521,00.html)

You are responsible for determining exactly how tax laws affect your payroll. Please consult your accountant and the IRS Web site: www.irs.gov

We hope this information is helpful.

Sincerely,
ECi DDMS Technical Support