What are the tax withholding considerations if I am Contract Pay?
Employees who are Contract Pay have lesser amounts of income tax withheld from their pay than if they are set up as monthly employees. PeopleSoft interprets Contract Pay as the only pay the employees will receive for the entire year. Employees who are Contract Pay may wish to request additional income tax withholding on their W-4 forms. Please consult a tax advisor for advice.
