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FAQ

 Legislative Updates
   FAQ
  Questions/Answers Regarding the Stimulus Package 
 
 

If I mark "no change" on the Substitute W-4P withholding form, does that mean the amount of taxes withheld from my benefit will not change?

No. Marking "no change" on the Substitute W-4P withholding form will apply your current federal withholding election, based on marital status and number of allowances (i.e. married with 2 allowances, single with 1 allowance, etc.), to the new tax tables. Since the new tax tables were designed to stimulate the economy by putting more money in your pocket, the result will be less federal tax being withheld. Unfortunately, this is not a situation where you can choose between the old and new tax tables. We are required by law to use the most current tax tables for withholdings.


 
 

How much of a difference will the new tax tables make in the net (take home) amount of my benefit?

The change in your take home amount depends on your individual income situation. The difference may range from $0 to $70. For your convenience, a tax calculator with the new tables is available on our website. We also left the old tax calculator on our website so you can see the difference in the calculation between the old and the new withholding tables. Remember, you don't have the option to use the old tax tables for withholding purposes.

Examples of Federal Withholding Difference

                             Between Current Tax Table and the New Tax Table

 

Benefit

Amount

Single with

0 allowances

Single with

1 allowance

Married with

1 allowance

Married with

2 allowances

$500.00

Current $27.90

New        $0.00

Current   $0.00

New        $0.00

Current   $0.00

New        $0.00

Current   $0.00

New        $0.00

$1,000.00

Current $84.55

New      $46.85

Current $47.48

New        $9.78

Current   $2.88

New        $0.00

Current   $0.00

New        $0.00

$1,500.00

Current $159.55

New    $121.85

Current $113.92

New      $76.22

Current $52.88

New        $0.00

Current $22.47

New        $0.00

$2,000.00

Current $234.55

New    $196.85

Current $188.92

New    $151.22

Current $102.88

New      $38.28

Current $72.47

New        $7.87

$3,000.00

Current $389.55

New    $346.85

Current $338.92

New    $301.22

Current $237.87

New    $171.17

Current $192.25

New    $125.55


 
 

Am I required to do anything?

No. If you do not wish to change your tax withholding election, no action is required. By doing nothing, your current election will be applied to the new tax tables, possibly resulting in less federal tax being withheld.

MPERS included a notice with your March benefit payment so you would be aware of the stimulus package and the new tax tables. If you are concerned how this might affect your federal tax withholdings, a tax calculator with the new tables is available on our website. Please keep in mind that MPERS staff are not tax professionals and cannot give tax advice. We encourage you to consult the IRS or a tax advisor for complete information regarding the stimulus package provisions and how these changes might affect your federal tax withholding and liability.

IRS Contact Information for Assistance:

Telephone Assistance for Individuals: Toll-Free (800) 829-1040

Hours of Operation: Monday - Friday, 7:00 a.m. - 10:00 p.m. your local time

Website: www.irs.gov


 
 

When will MPERS start using the new tax tables?
MPERS will start using the new tax tables with the April benefit payments that will be sent on April 30.
 

 

Do these changes affect my state tax withholding?
No. These new tax tables apply to federal tax withholding only and do not apply to state taxes.
 

Mailing Address: PO Box 1930, Jefferson City, MO 65102-1930 • Office Location: 1913 William St., Jefferson City, MO 65109
Phone Number: (573) 298-6080 • Toll Free: (800) 270-1271 • Fax: (573) 526-5895 • Email: mpers@modot.mo.gov