Employees paid on a biweekly basis normally have 24 payrolls from which non-mandatory deductions, such as additional federal and state taxes and contributions to the 403(b) and 457(b) plans, are taken. Two payrolls typically do not have non-mandatory deductions withheld because the pay period is the third one ending in the month.

In calendar year 2008, however, there are three payrolls from which non-mandatory deductions will not be taken. On an annualized basis, this will result in less money being withheld from your pay for additional taxes or elective retirement contributions than you may have planned.

If you wish to have the original annualized amount withheld from your pay, you will need to increase your deduction amount accordingly.

For example, if you authorized additional federal withholding of $100 per pay period that would normally result in $2,400 being withheld for the year. But in 2008, only $2,300 would be withheld since non-mandatory deductions will not be taken for three paydays. You may wish to increase the amount of your deduction for the rest of the year to make up this difference. The new deduction amount you authorize, however, will remain in effect until you take action to change it.

You may make a change to the amount of your payroll deductions by visiting At Your Service Online. If you have any questions, please contact your local Payroll Office.