Tax changes fatten paychecks

As a result of new federal tax rates recently signed into law, many employees saw an increase in net pay on their July 7 paycheck, said Chris Canellos, the university's tax director.

The law reduces most marginal federal income tax rates and provides additional tax relief to married couples and parents. A single wage earner with an annual salary of $50,000 who claims one dependent will see federal income tax withholding decrease by $20 per paycheck, he said. A married wage earner at the same salary and claiming four dependents will see approximately $16 less federal tax withholding per paycheck. Withholding reductions per paycheck for those at the $100,000 wage level will be $65 for singles and $98 for married employees, he said.