The Internal Revenue Service has decreased the amount of money that will be taken out of employee paychecks, but students may get smaller refunds or have to pay tax at the end of the year if they agree to the new withholding tables.

"What the new tables do is reduce the amount of tax withheld from your paycheck," said Lawrence Ritchey of the tax preparation service Ritchey Cox and Associates, 315 S. Allen St. "The tax rate does not change, so if you normally receive a refund, you may get a smaller refund, or you may owe some money at the end of the year."

If students do not want their income to fall under the new withholding tables, they should ask their employer for a new W-4 form to indicate their preference, Ritchey added.

Married people may receive a maximum of $345 more per year in their paychecks. Single people may receive a maximum of $172 extra a year, said Tom Kirsch, manager of H&R Block in Hills Plaza.

The only change on the W-4 is that filers should add the amount of money to be taken out of their paychecks that would otherwise be included under the new table, Kirsch said.

"The amount you put down depends on two things: your filing status and how often you get paid," Kirsch said.

The new withholding tables -- initiated by President Bush in his last State of the Union address -- will increase the amount money in people's paychecks thus increasing consumer spending, said Charles R. Enis, associate professor of accounting.

But the policy will not move the country out of the recession, he added.

"It's a quick fix," Enis said. "It's something that the president can do without going through Congress. It has a political and psychological aspect."

Long-term policy is needed to improve the economy, he added.

"It's not (going to) be fixed with short-term gimmicks," Enis said.