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US PAY: After applying the 23-DEC-2010 Monthly Vertex Interim Update, FIT is calculating higher for
=== Question ===
After applying the 23-DEC-2010 Monthly Vertex Interim Update, FIT is not calculating correctly.
The amount is calculating higher than the 2010 rates.
If the tax cuts were extended, why did the employee's FIT increase in 2011?
=== Answer ===
In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act provided a "Tax Credit" of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.
Although the existing tax rates were extended for 2011, the Making Work Pay Tax Credit expires on December 31, 2010.
As a result, the income tax withholding tables for 2011 are not adjusted for the Making Work Pay Tax Credit.