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AT&T 2007 Payroll Questions |
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Tuesday, 09 January 2007 |
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We have received many inquiries regarding payroll problems at AT&T. We have looked into the most frequently asked questions and this is what we have discovered.
In November 2006, employees at AT&T should have been informed that their tax withholdings would default to single “0”, unless they accessed the AT&T employee website to change their Federal w-4 and submitted a fax paper to change their w-4 for their state withholdings. If people did not do this, they had a larger % of taxes withheld than they would normally had if they had dependents listed. They can still change it on line through e-corp. Anyone with an income over $50,000 per year has to pay taxes on their life insurance on the coverage amount that over $50k. For instance, if you make $25/hour, your annual income is $52,000, you now have to pay taxes on the $2000 of your company life insurance. This was a change to the tax law, not an arbitrary decision of AT&T. We now get taxed on the premium that AT&T pays for our Legal Services Plan. This cost averages about $6.95 per week, it is recorded as income and taxes are paid on it accordingly. It totals about $180 per year, which is reported as taxable income. There was a disclaimer on the confirmation page during open enrollment, which gave employees the option to opt out during open enrollment of the Legal Services Plan. The paychecks that were supposed to be EFT came live because the bank routing codes were not transferred to the new payroll system correctly. You can go online to re-do your EFT, or make sure that the routing and account numbers are correct. This problem did not impact everyone on EFT, only a small percentage. The City Allowance, where applicable, used to be an automatic code within AT&T’s payroll system. In the SBC system, the payroll person on site has to manually put the city allowance code in for each employee. This was not communicated to the on site payroll contacts until after the cut off date for the payroll corrections. |
