A new function is being implemented in the Payroll section of PostalEASE. It will enable employees to make their own revisions to state tax withholding (State Form W-4) information. Currently, state changes must be mailed to HR Shared Services Center (HRSSC) for data entry. Starting November 1, 2010, employees may use PostalEASE online to modify their State Form W-4 data.
Current state tax selections will be validated using the duty station finance number and taking into consideration any reciprocity agreements with other states. All employees with “invalid” state tax selections will be sent letters notifying them of the need to make changes to their state tax withholding information in the near future.
Adjustments may include the name of the state for which taxes are being withheld, the filing status (single, married, etc.), the number of dependents, additional withholding amounts, and percentages (when applicable) to be withheld. These changes will only be allowed if the state code is valid based on the employee’s assigned duty station finance number. There will be drop-down boxes and instructions in the system to guide users through the process of making their revisions. The use of PostalEASE for these modifications will result in quicker processing of the requests. The system will notify the employee of the effective pay period for the change based on when the data is entered.
After January 1, 2011, all employees with an “invalid” state selection will have their withholding tax defaulted to the state of their duty station finance number with their filing status as “Single” and their exemptions set to “0” until they make a change. Also, if a PS Form 50, Notification of Personnel Action, is processed and includes a change to the assigned duty station finance number, the system will automatically default the state tax code to a valid state with a status of “Single” and exemptions of “0”. It will be each employee’s responsibility to make the necessary changes in PostalEASE if he/she wishes to deviate from the default settings.
Remember: All administrative and managerial employees are prohibited from providing any tax advice to employees concerning the completion of State Form W-4.
— Payroll,
Controller, 10-21-10
