Yesterday morning, I went about my biweekly job of being Mr. Popular at work, by distributing the Paychecks.
This week the Company began using a new payroll company for our payroll processing.
As I began going about my duties, I had some of my coworkers began to come to me complaining that their paychecks were lower than usual. A conspiracy suddenly began that there must be some sort of “glitch in the payroll” with the new company…
Seeming that I don’t work on payroll and simply distribute the checks, I shrugged my shoulders and simply said that I’d promise to find out what exactly was going on with the bookkeeper when she arrived.
In the interim more and more complaints kept coming my way…only for me to explain that i was just as clueless as the next person…I was just the messanger.
I happened to bump into the bookkeeper as she got in and I quickly told her about the fury awaiting her. She was just as perplexed as the rest of us.
We began to speculate what may have happened. Was there a (previous) Federal or State tax-cut that had sunset this past week (April 15/17) or an increase that went into effect?
I was dispatched to start looking online for any such possibility, while the bookkeper began looking at the reports, she noticed something. The new company had inadvertantly deducted our insurance premiumns again (usually they’re taken once a month, but the new service didn’t realize that they’d already been paid)–no biggie–the credits will be rolled over to next month.
But something else was still awry. (Meanwhile the bookeper and I were both getting flack, for something neither of us did). I’m at my computer trying to pour over CBO and IRS figure tables (which made little sense to me…)
The bookeeper poured over the paperwork, and then eureka–she found something! It turns out the old payroll company was using the previous year’s tax tables (they ran their tables on the fiscal calendar) while the new company changes their tables on the normal calendar.
In the process we discovered that Federal tax rates had gone up (boooooo! Hiss! What ever happened to tax-cuts? When was an increased announced?)
So that was the culprate….but when did rates go up?