COLUMBUS (WDTN) – You could be getting more in your paychecks later this year if the Kasich administration gets its way.
2 NEWS Statehouse Reporter Jason Aubry explains the potential changes to how much is withheld from your paycheck.
The Kasich administration wants to make an adjustment to how much money is taken out of your paycheck to cover the taxes you owe. The Governor says it is a change that is several years overdue.
“Our fiscal situation is such, and our growth is such; you know, we’re up 537,000 jobs; that revenues are good,” Kasich said.
Those good revenues have Governor Kasich looking to adjust the withholding tables so workers get more money in their paycheck.
Andrew Bean with Glenn Bookkeeping says lowering the withholding tables by 3.1 percent, as Kasich is hoping to do, sounds great.
“The idea is to be even at the end of the year, not owe a bunch, not get a bunch back,” he said. “I think most people want as much in their pocket from week to week, from paycheck to paycheck, instead of waiting for a refund that comes once a year, to increase their spending power a little bit more.”
But he says the reality is, it will have little real impact.
“Nobody’s lifestyle is really going to change when they lower the withholding tables. Somebody making minimum wage might make a 10 or 15 cent per check difference so, not really noticeable; if you’re making 150,000-200,000 dollars a year, you’re talking a couple of dollars a paycheck so, again, not really noticeable,” Andrew said.
So why do this at all if the change is negligible? The answer is simple. The state is expected to have a tax surplus this year and can afford to pay the $150 million fee to make this happen.
Several years ago, the legislature did not fully reduce the withholding tables because of the cost to do so. As a result, more money than is necessary is taken out of some of our paychecks.