Did anyone receive notification regarding the recent tax law change? Effective for wages paid after 05/28/03 the withholding rate is decreased from 30% to 28%.
Is the withholding rate for Income Tax reporting (wages) different than backup withholding for missing or incorrect TIN or is it the same rate???
Currently our backup withholding rate for missing or incorrect TIN is 30%. Our systems people were notified that we need to change this rate to 28% no later than July 1, 2003. I just want to be sure withholding for payroll and wages would be the same rate as backup withholding for 1099INT reporting.