Priority of Deductions

Effective Pay Period (PP) 22-2018 (pay date November 2, 2018), the Postal Service™ implemented a revised priority of deduction schedule to include the newly implemented State Other Tax for the Oregon State Transportation Project Tax. Gross or net pay may not be sufficient to cover all mandatory, voluntary, and involuntary deductions. When determining why a deduction was not withheld, employees must take the priority of deductions into account. The following chart shows the order in which deductions are withheld:

 

Priority

Deductions

1

Retirement

2

Social Security

3

Medicare

4

Federal Tax

5

Health Insurance, in order as follows:

5.1 Pre-tax Federal Employees Health Benefits (FEHB) Deduction

5.2 Pre-tax USPS® Health Benefits (HB) Self Deduction

5.3 Pre-tax USPS HB Family Deduction

5.4 Post-tax FEHB Deduction
5.5 Post-tax USPS HB Self Deduction
5.6 Post-tax USPS HB Family Deduction

6

Basic Life Insurance — Federal Employees’ Group Life Insurance (FEGLI)

7

State Tax

7.1 State Income Tax

7.2 State Other Tax (effective 2018)

8

Local Tax

9

Salary Advance

10

PO Indebtedness

11

Other Federal Agency indebtedness, in order as follows:

11.1 Continuous Levy (Federal Payment Levy Program)

11.2 Salary Offset (including Treasury Offset Program)

12

Child Support, in order as follows:

12.1 Child Support

12.2 Spousal Support

13

Garnishment, in order as follows:

13.1 Bankruptcy

13.2 Commercial Garnishment

14

Flexible Spending Account (FSA) Health Care (pre-tax)

15

Federal Employees Dental and Vision Plan Insurance Program, in order as follows:

15.1 Dental (pre-tax)

15.2 Vision (pre-tax)

16

Health Savings Account (pre-tax)

17

Optional Life Insurance (FEGLI), in order as follows:

17.1 Option A

17.2 Option B

17.3 Option C

18

Long-Term Care Insurance — Federal Long Term Care Insurance Program

19

FSA Dependent Care (pre-tax)

20

Thrift Savings Program, in order as follows:

20.1 Loan Payment

20.2 Regular Deduction (pre-tax)

20.3 Roth Deduction (post-tax)

20.4 Regular Catch-up Deduction (pre-tax)

20.5 Roth Catch-up Deduction (post-tax)

21

Commuter Program, in order as follows:

21.1 Pre-tax Deduction

21.2 Post-tax Deduction

22

Military Buy Back

23

Union Dues

24

Charity

25

Miscellaneous Insurance, in order as follows:

25.1 Mutual Benefits Association Auto Insurance–National Association of Letter Carriers

25.2 Voluntary Benefits Plan–American Postal Workers Union

26

Extra Taxes

27

Allotments/Treasury Direct

28

Tax Levy