Postal Employees

Correction: Regular Rural Carrier Earnings Statement
Revision: ELM and Forms 8167 and 8168
All Postal Employees: 2000 Tax Information - Form W-2, Wage and Tax Statement
Fitness-for-Duty Examinations

CORRECTION

Regular Rural Carrier Earnings Statement

[Correction to two holiday pay descriptions in "Regular Rural Carrier Earnings Statement" (Postal Bulletin 22040). Corrected text is shown in bold.]

Effective Pay Period 24-00, checks dated November 24, 2000, the earnings statement (PS Form 1223) for regular rural carriers (FLSA Code B) was modified to identify the50 percent payment for working the relief day (TYP F) and the current "X" day balance.

DACA Fields for Form 1314

The following description applies to the DETAIL EARNINGS portion of the earnings statement:

WK Week 1 or Week 2 information

RSC/LEV Route type and route number

RATE The annual salary for the employee

CODE Designation and activity code

TYP Type of work/pay

C Christmas work

F DACA Code 3

H Holiday work

L All types of leave taken

O Overtime

W Paid work hours

X X day taken

HOURS Based on the TYP Code

C Evaluated hours of the route

F Evaluated hours of the route

H 8 hours for each holiday worked

L 8 hours for each day of leave

O OT hours

W Total evaluated hours for the week (days
worked x daily evaluated hours)

X 8 hours for each X day taken

PAY Gross amount based on the TYP Code

C 150% of the daily evaluated pay

F 50% of the daily evaluated pay

H One day's evaluated pay

L One day's evaluated pay for each day of leave

O Gross amount for OT

W One day's evaluated pay for each day worked
and for each X day

X No gross, amount included in Code W

X DAY BALANCE is in hours (whole number, nodecimal).

In this example, the carrier is on a 47 K route, with a daily evaluation of 9.40 hours. The carrier has a balance of one (1) "X" day (8 hours).

- Payroll Accounting, Finance, 1-11-01

REVISION

ELM and Forms 8167 and 8168

ELM 470 Increases Maximum Award Limits and Adds New Category of Award

Effective January 13, 2001, Employee and Labor Relations Manual (ELM) 470, Incentive Awards and Service Recognition, is revised to increase award maximums for nonbargaining employees. The revisions below will be incorporated into the next incremental update of ELM 16 (as ELM 16.1) on the Postal Service Internet at http://www.framed.usps.com/cpim/manuals/elm/elm.htm. Text changes are indicated with change bars. The revisions also will appear in the next printed ELM.

Notably, Exhibit 471 is modified in EAS Recognition and Award Program and PCES Noncash Recognition Only to show increases in award amounts; #5 is added to include the Exceptional Performance Award described in 475.5.

In Spot Awards, the maximum amount of the award is increased to $2,000 and the fiscal year cash limit is increased to $2,000. Also, the information on taxability is moved into the description paragraph.

In Vice President Awards, the maximum award amount is increased to $5,000. In Team Awards, the maximum award amount is increased to $2,000 and the fiscal year cash limit is increased to $2,000. In Exceptional Performance Awards, a new category of awards is added for nonbargaining employees.

Forms 8167 and 8168 Being Revised - Procedures to Temporarily Use Existing Forms Are Outlined

Form 8167, PCES Recognition Authorization or Vice President Award Authorization for PCES in EAS Positions, and Form 8168, Individual EAS Recognition/Awards Program Authorization, both dated November 1998, are being revised to reflect changes in ELM 470 (noted below) and will be republished in paper and stocked at the Material Distribution Center during FY2001. Until the revision is complete, those managers wishing to recommend an employee for the new Exceptional Performance Award can specify the award on Forms 8167 and 8168, section 7, called Basis for Award, along with the rationale for the selection. Submit as follows:

Exceptional Performance Award
Account Number 51328
Cash Code (39)

Employee and Labor Relations Manual (ELM)

* * * * *

470 Incentive Awards and Services Recognition

* * * * *

Exhibit 471 Overview of Recognition and Award Programs

* * * * *

EAS Recognition and Award Program and PCES Noncash Recognition Only

* * * * *

* * * * *

Career Bargaining Unit Employees Only

* * * * *

* * * * *

475 Awards for Career EAS and PCES Employees Only

* * * * *

475.16 Documenting and Processing the Award

Cash equivalent and noncash tangible items are obtained using normal purchasing procedures. Expenses should be charged to line 2C of the organization expense budget in order to track recognition. Forms 8168, Individual EAS Recognition/Awards Program Authorization, and Forms 8167, PCES Recognition or Vice President Award Authorization for PCES in EAS Positions, are submitted to Eagan ASC for cash equivalent informal awards only.

475.2 Spot Awards

* * * * *

475.22 Description

Awards may be cash, cash equivalent, or noncash tangible. Awards should be valued at a minimum of $50 and may not exceed $2,000. The amount of an award should be commensurate with the magnitude of the effort or achievement. With the exception of engraved plaques and trophies, all Spot Awards are taxable and must be reported to the IRS.

1. Cash awards are $50 to $2,000 issued in the form of a check.

* * * * *

475.27 Documenting and Processing the Award

* * * * *

2. Cash Equivalent and Noncash Tangible Awards. Items are obtained using normal purchasing procedures. Expenses are to be charged to line 2C of the organization expense budget to track recognition.

* * * * *

475.3 Vice President Awards

* * * * *

475.32 Description

Awards are for amounts up to $5,000, paid by check. The amount of an award should be commensurate with the magnitude of the effort or achievement. Vice President Awards are taxable and must be reported to the IRS. Tax withholding is processed as described in paragraph 475.36 below.

* * * * *

475.4 Team Awards

* * * * *

475.42 Description

Awards may be cash, cash equivalent, or noncash tangible for EAS employees. Awards should be valued at a minimum of $50 and may not exceed $2,000. The amount of an award should be commensurate with the magnitude of the team achievement. With the exception of engraved plaques and trophies, all Team Awards are taxable and must be reported to the IRS.

1. Cash awards are $50 to $2,000 issued in the form of a check.

* * * * *

475.44 Award Limits Ceilings

An EAS employee may receive up to $2,000 in cash Team Awards in a fiscal year (independent of Spot Award dollar amounts).

* * * * *

475.5 Exceptional Performance Awards

475.51 Purpose

Exceptional Performance Awards are cash payments to acknowledge and reward superior individual contribution or achievement that is deserving of systemwide recognition. They are intended to recognize contributions not encompassed by basic salary, merit salary adjusts, or formal pay for performance programs.

475.52 Description

Awards are for amounts up to $7,500 paid by check. The amount of an award should be commensurate with the magnitude of the effort or achievement. Exceptional Performance Awards are taxable and must be reported to the IRS. Tax withholding is processed as described in paragraph 475.56.

475.53 Eligibility

All career EAS employees and PCES employees in EAS positions are eligible for Exceptional Performance Awards.

475.54 Expenditure Limitation

The fiscal year expenditure for Exceptional Performance Awards is limited to $30,000 for each management committeeofficer.

475.55 Approval

Management committee or senior vice presidents must approve these awards and are responsible for establishing administrative procedures for issuing these awards within their respective organizations.

475.56 Documenting and Processing the Award

The recommending official completes Form 8168, Individual EAS Recognition/Awards Program Authorization, or Form 8167, PCES Recognition Authorization or Vice President Award Authorization for PCES in EAS Positions, and submits the form to the Eagan ASC for payment and required withholdings.

- Compensation, Employee Resource Management, 1-11-01

ALL POSTAL EMPLOYEES

2000 Tax Information - Form W-2, Wage and Tax Statement

1. Current Mailing Address
   To facilitate processing of 2000 tax information and to ensure correct and timely receipt of a 2000 Form W-2, Wage and Tax Statement, all employees must have a current mailing address on file at the distributed data entry/distributed reporting (DDE/DR) site. Current employees, as well as employees that have left the Postal Service, who have changed their address in 2000 and have not submitted Form 1216, Employee's Current Mailing Address, to their DDE/DR site should do so immediately. All Form W-2s are sent to the address on file at the time of printing and will not be forwarded.
2. General W-2 Information
   If an employee has earnings for more than one state, a separate Form W-2 will be issued for each state reported. The format of the 2000 Form W-2 has been changed from the 1999 version. Additions include:
1. Source of reported wages section. This section is used to reconcile your Earnings Statement with your Form W-2.
2. Notice to Employee on the reverse side of the form.
3. A statement concerning exemption fromwithholding.
4. Box 39, "Relocation Gross." There will no longer be a separate relocation Form W-2.
   Side one of Form W-2 is shown in this Postal Bulletin.
3. Inquiries
   All inquiries concerning payroll items, such as employee business expense, equipment maintenance, rent, T-COLA, money differences between earnings statement and W-2, leave buy backs, erroneous state or local tax deductions, TSP, FSA, etc., should be sent to Payroll Adjustments.
   All questions regarding Form W-2 must be submitted in writing. The request must include:
1. Employee's name.
2. Current mailing address.
3. Social Security number.
4. Name of office where employed (or where previously employed if not a current Postal Service employee).
5. Year(s) involved.
6. Specific question.
7. Employee's signature.

General questions: Imputed Income Life Insurance The imputed income life insurance amount shown in Box 35 of the 2000 Form W-2 is the net result of the IRS computation for taxable insurance benefits less the amount an employee pays for optional insurance in the calendar year. The IRS requires the Postal Service to report as income the cost of group term life insurance in excess of $50,000 that is paid by the employer. The formula is based on an employee's age, salary, and life insurance coverage.

Thrift Savings Plan (TSP) The following facts will clarify some of the common tax questions regarding TSP:

· Box 14, "Employee contributions (TSP)," will contain employee TSP contributions only.

· Box 1, "Wages, tips, other compensation," has been reduced by the amount of the employee's TSP contributions shown in Box 14.

· Box 17, "State wages, tips, etc.," has been reduced by the amount of employee TSP contributions in Box 14 for all states except New Jersey, Pennsylvania, and Puerto Rico.

· New York City; Kansas City, MO; Detroit; andSt. Louis are the only localities that allow income deferral for TSP. Box 20, "Local wages, tips, etc.," will be reduced by the amount of employee TSP contributions only if New York City, Kansas City, Detroit, or St. Louis is indicated in Box 19, "Locality name."

Employee Business Expense (EBE)
Equipment maintenance allowance (EMA), carrier drive-out, vehicle hire, supervisor vehicle usage, and special delivery are all considered employee expenses. Box 32, "Employee business expense," will contain the non-taxable (not the total) EBE amount, while Box 33, "Taxable employee business expense," will contain the taxable EBE amount. The taxable amount shown in Box 33 will also be included inBox 1, "Wages, tips, other compensation."

Flexible Spending Account (FSA)
The amount contributed to an employee's FSA for both health care and dependent care is shown inBox 10, and has been deducted from Box 1, "Wages, tips, other compensation."

Health Benefit Pre-Tax
The amount contributed for health benefit premiums are considered pre-tax unless the employee declined the pre-tax benefit. The health benefit pre-tax amount is shown in Box 37 and has been deducted from Box 1, "Wages, tips, other compensation."

State/Territory Gross Wages
The amount in Box 17, "State wages, tips, etc.," will equal Box 1 with the following exceptions:
New Jersey, Pennsylvania, and Puerto Rico do not allow income deferral. Therefore, employee TSP, FSA, and health benefit pre-tax contributions are not deducted from state gross. (Pennsylvania law was changed in 1997 to allow income deferral for flexible spending account health care (FSAHC) and health benefits pre-tax. Therefore, only these two amounts are deducted from Pennsylvania state gross.) Pennsylvania is the only state that does not require the imputed income life insurance to be added into the state gross.

Annuity Protection Program
Form W-2s are issued to former employees who receive payments from the Postal Service under the Annuity Protection Program. Any questions regarding these Form W-2s should be directed to:

Specialized Payroll and Benefits
Eagan Accounting Service Center
2825 Lone Oak Pkwy
Eagan MN 55121-9620

Obtaining Duplicate Forms
All requests for duplicate W-2s must be submitted in writing. The request must include:

1. Employee's name.
2. Current mailing address.
3. Social Security number.
4. Name of office where employed (or where previously employed if not a current Postal Service employee).
5. Year(s) requested.
6. Employee's signature.

* If unsuccessful requesting duplicate W-2s from the DDE/DR
site, duplicates can also be requested in writing from: Control
Section (W-2s), Accounting Service Center, 2825 Lone Oak
Pkwy, Eagan MN 55121-9611.

1. General W-2C Information
   Form W-2C is used by the Postal Service to correct errors previously filed on a Form W-2. The Form W-2C will report only the corrections and should be used in conjunction with the original Form W-2 issued when filing taxes and/or other related information.
2. Requesting a W-2C
   All requests for a corrected W-2 must be submitted in writing. The request must include:
1. Employee's name.
2. Current mailing address.
3. Social Security number.
4. Name of office where employed (or where previously employed if not a current Postal Service employee).
5. Year(s) requested.
6. Reason for request.
7. Employee's signature.

If you disagree with the tax information provided and are requesting that the tax statement issued be reviewed and corrected if wrong for ...	Then submit a written request to ...
Wages (1985 to the present)	For employees with Social Security numbers beginning with 000-328: Attn: Payroll Adjustments W-2 Eagan Accounting Service Center 2825 Lone Oak Pkwy Eagan MN 55121-9633 For employees with Social Security numbers beginning with 329 and up: Attn: Payroll Adjustments W-2 Eagan Accounting Service Center 2825 Lone Oak Pkwy Eagan MN 55121-9634
Relocation	San Mateo Accounting Service Center 2700 Campus Drive San Mateo CA 94097-9000
Annuity Protection Program	Specialized Payroll and Benefits Eagan Accounting Service Center 2825 Lone Oak Pkwy Eagan MN 55121-9620

3. Obtaining Duplicate W-2C Forms
   All requests for a duplicate W-2C must be submitted in writing. The request must include:
1. Employee's name.
2. Current mailing address.
3. Social Security number.
4. Name of office where employed (or where previously employed if not a current Postal Service employee).
5. Year(s) requested.
6. Employee's signature.

IRS Form 1099MISC, Miscellaneous Income, and IRS Form 1099R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.

Form 1099 MISC
These forms originate from all three Accounting Service Centers (ASCs). Please determine the nature of the payments and contact the appropriate office/ASC.

Form 1099R

This year, both the Office of Personnel Management (OPM) and the Eagan Accounting Service Center are sending out Form 1099-R: Eagan for Annuity Protection checks and OPM for monthly annuity checks. The originating agency should be listed on the Form 1099R. Try to determine which agency made the payments before making an inquiry.

- Payroll Accounting, Finance, 1-11-01

Fitness-for-Duty Examinations

Management Instruction, Fitness-for-Duty Examinations

The Management Instruction Fitness-for-Duty Examinations, EL-860-2000-7, is effective immediately and is now available on the Postal Service Intranet under Policies & Procedures and may be ordered from the Material Distribution Center. This instruction provides information about levels of fitness-for-duty examinations and their application by Postal Service and consultative medical personnel. This instruction replaces section 161.2 in Handbook EL-806, Health and Medical Services.

Employees may requisition copies of this publication as follows:

· Use Touch-Tone Order Entry by calling 1-800-332-0317, option 1, then option 2.

· Send a F3Fill-completed PS Form 7380, MDC Supply Requisition, by cc:Mail to MDC Customer Service 2 TOKSOO1L.

· Mail a completed PS Form 7380 to the followingaddress:

SUPPLY REQUISITIONS
500 GARY ORMSBY DRIVE
TOPEKA KS 66624-9702

Description: Fitness for Duty Examination
Management Instruction
PSN: 7610-05-000-4169
PSIN: MIEL86020007
Unit of Issue: EA
Price: $0.3645
Bulk Pack Qty: 400
Edition Date: 9/00

PS Form 2492, Request for Fitness-for-Duty Examination

The PS Form 2492, Request for Fitness-for-Duty Examination, is now available and may be ordered from the Material Distribution Center.

Use PS Form 2492 when requesting a fitness-for-duty examination. Refer to Management Instruction EL-860-2000-7, Attachment 3 for additional information concerning the use of this form.

Employees may requisition copies of this publication as follows:

· Use Touch-Tone Order Entry by calling 1-800-332-0317, option 1, then option 2.

· Send a F3Fill-completed PS Form 7380, MDC Supply Requisition, by cc:Mail to MDC Customer Service 2 TOKSOO1L.

· Mail a completed PS Form 7380 to the following address:

SUPPLY REQUISITIONS
500 GARY ORMSBY DRIVE
TOPEKA KS 66624-9702

Description: Request for Fitness for Duty Examination
Form
PSN: 7530-05-000-4159
PSIN: PS2492
Unit of Issue: SE
Price: $0.1159
Bulk Pack Qty: 3,000
Edition Date: 8/00

- Health and Resource Management,Employee Resource Management, 1-11-01