Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2009 to continue to claim total exemption from federal tax withholding provided they owed no federal taxes for 2008. These regulations also require that a new Form W-4, Employee’s Withholding Allowance Certificate, be submitted every calendar year by employees claiming an exempt status. However, because of PostalEASE, 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 USPS® Intranet at http://blue.usps.gov or by calling PostalEASE toll-free 877-477-3273. Follow the Form W-4 instructions provided by PostalEASE, and your form will be updated for calendar year 2009. If you need to contact the HR Shared Service Center (HRSSC) in Greensboro concerning this matter, call 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 (PP) 06-09. For an exempt Form W-4 to remain effective into next year, the IRS requires completion, submission, and acceptance of the form by no later than February 17. Since February 17 falls within PP 05-09, updated Form W-4 information must be entered into PostalEASE by no later than Monday, February 14. Entry of the information by that date will ensure continuation of the exempt status for 2009.
Any employee who claimed exempt status for 2008 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 PP 26-08) will receive printed messages on their earnings statement during PP 02-09 and PP 03-09 reminding them that a new Form W-4 is required.
Reminders
All administrative and managerial employees are prohibited from providing any 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,
Controller, 1-29-09
