Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2010 to continue to claim total exemption from federal tax withholding provided they owed no federal taxes for 2009. These regulations also require 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 Forms W-4 by either logging onto PostalEASE via the USPS® Intranet at http://blue.usps.gov or by calling PostalEASE toll-free at 877-477-3273, option 1. Follow the Form W-4 instructions provided by PostalEASE, and your form will be updated for calendar year 2010. 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 the exempt status will be converted to a taxable status, effective Pay Period (PP) 05-10. For an exempt status to remain effective into the next year, the IRS requires completion, submission, and acceptance of a new form no later than February 17. Since February 17 falls within PP 05-10, updated Form W-4 information must be entered into PostalEASE no later than Wednesday, February 17, 2010. Entry of the information by that date will ensure continuation of the exempt status for 2010.
Any employee who claimed exempt status for 2009 and doesn’t submit a new Form W-4 will have federal taxes withheld at the rate normally applicable to an employee claiming “Single” with “0” allowances. Employees with an exempt status (as of PP 26-09) will receive printed messages on their earnings statement during PP 03-10 and PP 04-10 reminding them a new Form W-4 is required.
Reminders
n All administrative and managerial employees are prohibited from providing any tax advice to employees concerning the completion of Form W-4.
n Sending information concerning exempt Form W-4 to Eagan Accounting Services is no longer required.
— Payroll, Finance, 1-28-10
