United States Department of Agriculture

Office of the Chief Financial Officer

National Finance Center

P.O. Box 60000 New Orleans Louisiana 70160

Beginning with wages paid for Pay Period 13, 2015, the National Finance Center (NFC) has made the following changes to the State of Arkansas income tax withholdings:

• The annual standard deduction will increase from $2,000 to $2,200.
• An adjustment to the annual net taxable income will be introduced for net taxable income of less than $50,000. The income must be adjusted before calculating tax using the tax table when it is below $50,000. The adjustment is made by truncating (shortening) the annual wages to the nearest $100 and then adding $50.
• The tax table will change.
• The annual personal tax credit, per exemption claimed, will increase from $20 to $26.

No action on the part of the employee or the personnel office is necessary.

Attached is the Arkansas State Income Tax Information.

To view the updated tax formula go to the NFC Home Page. Under Popular Topics, click Tax Formulas and select the appropriate State from the map provided.

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.

/s/
DEBBIE TATUM for
ANITA H. FINCHER, Director
Government Employees Services Division

Attachment