The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1944-12-26
By :. BURTON HEATH
NEA Staff Correspondent

NEW EORk-Yuur first pay
i'm January Will be different than
your last one in December. In a
few instances II may be slightly
larger, but for most workers 1t
VIII be smaller. The difference
Will represent change IN the
withholding tax approved by
the President May % but not eff
tcCtiyc until January |.
The new withholding rate is
intended 10 cover the entire in
come tax on wages and salaries
up 10 $1,000 a Year. 1t can hard
IN be exact, but it does come
fairly close. In general, on
typical wage grades, the with
holding after January will take
out a trlfle more than the actual
tax shown by the tables for those
wage scales.
Fox example, single man
without dependents, earning S35
a week the year around, will
owe $3.50 on his 1915 wages if
he files the withholding receipt
and lets the Government figure
his tax. Under this years with
holding rates. his employer will
have held back only S239.20. and
this man will have 10 pay the
difference, or $1,000, on March
Is.
NEW RATES
Under the new rates this man S
employer Will hold back $50 a
week instead Of the old S4 80,
At years end, he will have paid
S265 20 against a tax of $3.50, and
can claim a refund of $500.
Or consider a married man
with no dependents except his
wife and wage of SIS a week
This year his employer withheld
Sc 20 week, or 1922 40 in all,
which lacked SIS 60 of covering
his tax rtaken from the table, of
1878. Next year that mans en-
ploycr will hold back S7.40 a
week. At the end of the year,
instead of having to pay $3.50
in lump sum, the worker can
claim a refund of $3.50.
The worker whose withhold
ing is going to be lower is the
one with several dependents.
For illustration. let's take a mar
rlcd man with three children, or
other dependents in addition to
his wife. He earns SIS a week
His income tax taken from the
table for 1914 is S297, and it
probably will be the same for
l945. This year his employer
has been Withholding $3.50 a
week. or S343.20, so that he now
has overpaid his tax by S4620,
for which he must apply and
wait, Next year the deduction
will be only $3.50, or 1921 100
for the year. II he uses the tax
table, he will owe $3.50 on
March Is.
These three examples typify
the fact that the new withhold
ingS, whether they take slightly
more or slightly less than the
actual tax computed by the table
come much closer TO keeping
taxpayers accurately paid = up
than the 1914 withholding rates
did.
In every instance, of course,
the taxpayer who uses Form
l040 and figures his own tax,
instead of filing his Withholding
Receipt or reading the tax from
the table, will get slightly diff
ferent figures. And where
there is other income, on which
no tax has been withheld, this
will affect somewhat the exact
amount that has to be paid-or
that can be claimed as a refund
at the end of the year.
NO TABLES OVER $4,000
The withholdlngs are designe.
to be reasonably accurate only
up TO $4,000. For those who earn
more than that, the withholdings
will be increased but they still
will leave increasingly large
amounts that will have 10 be
paid in a lump sum at the end
Of the year. Nobody questioned
that the above $4,000 taxpayer