Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2025 to claim total exemption from federal tax withholding provided they owed no federal taxes for 2024. These regulations also require employees claiming an exempt status to submit a new Form W-4, Employee’s Withholding Certificate, every calendar year. If an employee uses PostalEASE, they no longer need to file a hard copy Form W-4.
Employees may meet IRS filing requirements for exempt Forms W-4 by either:
n Logging onto PostalEASE via the USPS® intranet at liteblue.usps.gov or
n Calling PostalEASE toll-free at 877-477-3273, and selecting option 1.
Follow the Form W-4 instructions in PostalEASE, and your form will be updated for calendar year 2025.
If you need to contact the HR Shared Service Center, in Greensboro, call 877-477-3273, select menu option 5, and then request Benefits when prompted. Employees who are deaf or hard of hearing can call the Federal Relay Service at 1-800-877-8339 to contact the HR Shared Service Center.
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) 05-2025. For the exempt status to remain effective into 2025, you must enter updated Form W-4 information in PostalEASE no later than Wednesday, February 19, 2025, 3:00 p.m. Central Time. However, to ensure a seamless continuation of the exempt status for 2025 employees are encouraged to update their W-4 information no later than a day or two in advance of February 19.
An employee currently in an exempt status may file for exemption after the February 19 deadline. However, the employee’s exempt status will not be continuous from 2024 to 2025. Depending on the day the W-4 information is entered in PostalEASE, the 2025 exempt status becomes effective within the pay period of entry or the pay period following entry.
Any employee who claimed exempt status for 2024, but does not submit a new Form W-4, will have federal taxes withheld at the rate normally applicable to an employee claiming “Single” with no other deductions. Employees with an exempt status (as of PP 26-2024) will receive printed messages on their earnings statements during PP 02-2025, PP 03-2025 and PP 04-2025 reminding them a new Form W-4 is required.
Remember:
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, 12-12-24