The Internal Revenue Service has announced new tax withholding rates in support of the American Recovery and Reinvestment Act of 2009, commonly called the economic stimulus package. Mississippi State will start using these new rates with the March 15 payroll cycle.
Benefits of the new tax rates will affect everyone differently based on his or her individual withholding situation. Most MSU employees will see a small increase in net pay due to a reduction in federal withholding taxes. No employee action is required for this change.