As a Postal Service™ employee, you are personally responsible for ensuring correct federal, state, and local taxes are deducted from your pay.
Upon submission of your federal and state tax returns, you are urged to review your federal and state tax withholdings, particularly if you owed a significant amount of money or were due a large refund. If you are someone who counts on a big tax refund by a certain date to make a major purchase or to pay a financial obligation, you need to know more tax returns are facing additional review as the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections.
In addition, a recent tax law requires the IRS to hold the refund for any tax return claiming either the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until February 15. By law, the IRS must hold the entire refund, not just the portion related to the EITC or ACTC. Thus, a refund may be delayed.
You are also encouraged to review your federal and state tax withholdings whenever any of the following scenarios take place:
n A change in marital status or a change in your number of dependents.
n A change in the anticipated amount of itemized deductions or tax credits for the next tax year.
n A new hire default to a “Single” marital status and zero withholding allowances.
n A PS Form 50, Notification of Personnel Action, that included a “state” change to assigned duty station finance with a subsequent default of a “Single” marital status and zero withholding allowances.
n A failure to update your PostalEASE Federal W-4 and/or State Tax Payroll modules, if you wished to deviate from the default settings.
Taking a closer look at the taxes being withheld can help ensure the right amount is withheld. A taxpayer with a big refund can reduce the refund amount and boost take–home pay by claiming additional withholding allowances. Anyone with a big balance due can have additional tax withheld.
The IRS offers several online resources to help taxpayers bring taxes withheld closer to what is owed. These resources are available anytime on www.irs.gov. They include:
n IRS Withholding Calculator — Online tool that helps determine the correct amount of tax to withhold.
n IRS Publication 505 — Tax Withholding and Estimated Tax.
n Tax Withholding — Complete information on withholding, estimated taxes, FAQs, and more.
If you are subject to federal, state, and/or local taxes and the correct deductions are not being withheld from your pay, you should take immediate action to ensure appropriate tax withholdings.
n Complete the federal Form W-4, Employee’s Withholding Allowance Certificate, and/or the state equivalent of the federal Form W-4. (For example, to update Minnesota tax withholdings, complete Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate). Complete the federal Form W-4, if your state does not have its own state equivalent of the federal Form W-4.
n Go to the LiteBlue home page (www.liteblue.usps.gov) to access the PostalEASE App.
n Update your Federal W-4 Payroll Module and/or your State Tax Payroll Module.
n If you do not have access to a computer and/or the Internet, forward your completed form(s) to:
HR Shared Service Center (HRSSC)
PO Box 970400
Greensboro, NC 27497-0400
Direct all questions concerning these taxes to the HRSSC at 877-477-3273, option 5 (TDD/TTY 866-260-7507).
Note: It is to your advantage to complete the paper form prior to your PostalEASE update, as the paper form comes with helpful instructions for complex state withholding selections.
The Postal Service is prohibited from providing any tax advice to employees. Any questions regarding your tax liability/responsibility should be directed to the IRS or a qualified tax attorney or accountant.
— Payroll,
Controller, 1-5-17
