Finance

Priority of Deductions

Effective Pay Period 01-12 (Pay Date January 6, 2012), the Postal Service™ implemented a revised priority of deduction schedule. Gross/net pay may not be sufficient to cover all mandatory, voluntary, and involuntary deductions. When attempting to determine why a deduction was not withheld, the priority of deductions needs to be taken into account. The following chart shows the order in which deductions are to be withheld:

 

Priority

Deduction

1

Retirement

2

Social Security

3

Medicare

4

Federal Tax

5

Health Insurance (Federal Employees Health Benefits), in order as follows:

5.1 Pre-tax Deduction

5.2 Post-tax Deduction

6

Basic Life Insurance (Federal Employees Group Life Insurance)

7

State Tax

8

Local Tax

9

Salary Advance

10

Post Office Indebtedness

11

Other Federal Agency Indebtedness, in order as follows:

11.1 Continuous Levy (Federal Payment Levy Program)

11.2 Salary Offset (including Treasury Offset Program)

12

Child Support, in order as follows:

12.1 Child Support

12.2 Spousal Support

13

Garnishment, in order as follows:

13.1 Bankruptcy

13.2 Commercial Garnishment

14

Flexible Spending Accounts Health Care, in order as follows:

14.1 Regular Deduction — (pre-tax)

14.2 Arrears Deduction — (pre-tax)

15

Federal Employees Dental and Vision Insurance program, in order as follows:

15.1 Dental — (pre-tax)

15.2 Vision — (pre-tax)

16

Health Savings Account — (pre-tax)

17

Optional Life Insurance (Federal Employees Group Life Insurance), in order as follows:

17.1 Option A

17.2 Option B

17.3 Option C

18

Long-Term Care Insurance (Federal Long-Term Care Insurance Program)

19

Flexible Spending Accounts Dependent Care, in order as follows:

19.1 Regular Deduction — (pre-tax)

19.2 Arrears Deduction — (pre-tax)

20

Thrift Savings Plan, in order as follows:

20.1 Loan Payment

20.2 Regular Deduction — (pre-tax)

20.3 Roth Deduction — (post-tax) (effective 2012)

20.4 Regular Catch-up Deduction — (pre-tax)

20.5 Roth Catch-up Deduction — (post-tax) (effective 2012)

21

Commuter Program, in order as follows:

21.1 Pre-tax Deduction

21.2 Post-tax Deduction

22

Military Buy Back

23

Union Dues

24

Charity

25

Misc. Insurance, in order as follows:

25.1 National Association of Letter Carriers — Mutual Benefit Association Insurance

25.2 Voluntary Benefit Program

26

Extra Taxes

27

Allotments/Treasury Direct

28

Tax Levy

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