A mistake in the College Station school district’s federal tax withholding tables has left employees on the hook for money that should have been withheld, but was not.
In some instances, it amounts to $1,000 because the incorrect tables were used during the 2021 tax year through April. This means for those paychecks using the incorrect withholding tables, a lower amount was being withheld than should have been, based on the federal government’s calculations.
“The bottom line is that not enough money was withheld for federal income taxes,” Chuck Glenewinkel, director of communications for the school district, wrote in an email, saying the financial impact on each employee is different.
According to a statement from the school district, the mistake was brought to the payroll department’s attention earlier this semester by an employee who noticed the withholding deductions seemed low.
“After researching the employees concerns, it was determined that the federal tax withholding tables needed to be updated in the district’s payroll software,” the statement continues.
People are also reading…
The mistake affects all district employees, and the district stated it sent out an email to all employees last week with individualized information. This included the amount that should have been withheld, the amount that actually was withheld, and how much the employee owed as a result of the mistake.
According to the statement, the payroll department is helping employees amend their W-4 tax forms if the employee chooses.
Glenewinkel said the tax tables are updated each time the tax law changes, but the most recent update was not done properly, so the incorrect federal tax withholding tables were in the system.
The district is updating the tax tables in its system, he said, so they will be correct for upcoming paychecks for the remainder of the 2022 tax year. The incorrect tables were used through the first four months of the 2022 tax year also.
“We regret that this has resulted in confusion and distress to some staff, and we apologize for any frustration this has caused,” the district’s statement concludes.
“Any employee needing additional clarification or assistance regarding the issue is encouraged to contact the CSISD business services department.”
Get our local education coverage delivered directly to your inbox.