Telework-Eligible Employees May Update State Tax Withholding

Management Instruction EL-310-2021-2, Telework Program for Eligible Nonbargaining Employees and PCES, was recently published to address changes to USPS® telework policy. Eligible employees are now allowed to telework up to 3 days per week from an alternate work location.

Since this location could be in a different state or locality than the employee’s assigned duty station, employees working in an approved telework-eligible occupation code may access the State Tax Payroll module in PostalEASE ( and elect state tax withholding according to their remote work location. If a telework-eligible employee splits work hours between locations in two different states, this individual may elect to have tax withheld from one state for part of the year and the other state for the rest of the year.

How to Update State Tax Withholdings

n Go to the LiteBlue home page ( to access the PostalEASE App.

n Update your State Tax Payroll module.

n If you do not have access to a computer or the Internet, you can call PostalEASE toll-free at 877-477-3273, option 1, and follow the instructions.

Note: It is to your advantage to complete the paper form before your PostalEASE update, as the paper form comes with helpful instructions for complex state withholding selections.

If you need assistance, contact the HR Shared Service Center at 877-477-3273, option 5. Employees with hearing disabilities can call the Federal Relay Service at 800-877-8339.

Employees in affected occupation codes will now be solely responsible for appropriately assigning their state tax withholding. Employees moving to and from telework-eligible positions (due to reassignment, promotion, relocation, etc.) will no longer have their state tax withholding automatically updated to match their duty station.

The Postal Service™ is prohibited from providing any tax advice to employees. Direct any questions about your tax liability/responsibility to the Internal Revenue Service or a qualified tax attorney or accountant.