Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2014 to continue to claim total exemption from federal tax withholding provided they owed no federal taxes for 2013. 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, these employees no longer have to file a hard copy Form W-4.
Employees may meet IRS filing requirements for 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 2014. If you need to contact the HR Shared Service Center (HRSSC) in Greensboro about 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) 05-14. 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 15. Since February 15 falls within PP 05-13, updated Form W-4 information must be entered into PostalEASE no later than Saturday, February 15, 2014. Entry of the information by that date will ensure continuation of the exempt status for 2014.
Note: An employee may file for exemption after the February 15 deadline; however, in this instance, the employee’s exempt status will not be retroactive to Day 1 of the calendar year. The employee’s exempt status is prospective. Depending on the day of the pay period in which W-4 information is entered into PostalEASE, the exempt status is effective the pay period of entry or the pay period following entry.
Any employee who claimed exempt status for 2013 and who does not 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 26-13) will receive printed messages on their earnings statements during PP 03-14 and PP 05-13 reminding them that a new Form W-4 is required.
n All administrative and managerial employees are prohibited from providing any tax advice to employees about the completion of Form W-4.
n Sending information about exempt Form W-4 to Eagan Accounting Services is no longer required.
— Payroll,
Controller, 1-9-14
