Link to contents


NOTICE

Form W-4 Completion for Employees Claiming Exempt Status for 2007

Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2007 to continue to claim total exemption from federal tax withholding provided they owed no federal taxes for 2006. These regulations also require that employees who claim an exempt status submit a new Form W-4, Employee's Withholding Allowance Certificate, every calendar year. Because of PostalEASE, however, it is no longer necessary for these employees to file a hard copy Form W-4.

Employees may meet IRS filing requirements concerning exempt W-4s by either logging onto PostalEASE via the Postal Service Intranet at http://blue.usps.gov or by calling PostalEASE toll-free at 877-477-3273. Follow the Form W-4 instructions provided by PostalEASE, and your form will be updated for calendar year 2007. If you are from a locality that is serviced by the Human Resources Shared Service Center (HRSSC) in Greensboro, you can direct any questions to 877-477-3273, option 5.

Any employee currently in an exempt status who does not submit a new Form W-4 claiming a continuation of that status will be converted to a taxable status, effective Pay Period 05-07. For an exempt Form W-4 to remain effective into the next year, the IRS requires completion, submission, and acceptance of the form no later than February 15. Since February 15 falls within Pay Period 04-07, updated Form W-4 information must be entered into PostalEASE no later than Monday, February 12. Entry of the information by that date will ensure continuation of the exempt status for 2007.

Any employee who claimed exempt status for 2006 who does not submit a new Form W-4 will have federal taxes withheld at the rate that would normally be applicable to an employee claiming Single with 0 allowances. Employees with an exempt status (as of Pay Period 26-06) will receive printed messages on their earnings statement during Pay Periods 02-07 and 03-07 reminding them that a new Form W-4 is required.

Reminders:

• All administrative and managerial employees must not provide tax advice to employees concerning the completion of Form W-4s.

• Sending information concerning exempt Form W-4s to the Eagan Accounting Service Center is no longer required.

— Payroll Accounting,
Finance, 11-9-06