4.16 A. Income Tax Withholding Under the 414(h) Tax Deferral Plan

When computing federal or state income tax withholding, the 4.50% Regular (7.50% SLEP, 7.50% ECO) member contribution should be subtracted from the gross salary.

Example:

If a Regular plan member is paid $500, withholding should be calculated on $477.50 ($500 - $22.50).

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