UPDATE ON RETROACTIVE PAY

  UPDATE ON RETROACTIVE PAY

The retroactive pay due under the terms of the 2019 -2022 National Agreement will be included in the October 30, 2020 paychecks. There are multiple variables that determine how much any one employee will receive.

The retroactive general wage increase period was November 23, 2019 through April 24, 2020. The retroactive period for the March COLA increase was February 29, 2020 through April 24, 2020.

Retirees received retroactive pay for the hours that they were actively employed and worked from November 23, 2019 until their retirement date if their date was prior to April 24, 2020. This check was sent to their last office of record.

The amount an employee received was based on the following:

Actual hours worked
Step and level of pay during the retroactive pay period. For example a Level 5, Step P employee will not receive the same pay as a Level 4, Step A employee.
Overtime hours worked
Any shift differential worked, such as Sunday Premium, Night Differential, etc.
Leave Hours paid
LWOP Hours used

Reference: www.npmhu.org  

USPS encourages "paycheck checkup" due to changes in tax law

  USPS encourages "paycheck checkup" due to changes in tax law

Federal Income Tax Withholding (Link to USPS Bulletin)

The 2017 Tax Cuts and Jobs Act made major revisions that affected taxpayer withholding. Due to changes in the law, personal exemptions are no longer a central feature of the tax code. The Internal Revenue Service updated Form W-4, Employee’s Withholding Allowance Certificate, to reflect these changes. Employees who have submitted Form W-4 in any year before 2020 are not required to complete a new form, and USPS® will continue to compute withholding based on information from the employee’s most recently submitted Form W-4.

For employees who do submit a revised Form W-4 in 2020, withholding will be based on expected filing status and standard deduction for the year. Employees can also choose to have qualified children and other dependents, multiple jobs or spouse works, and other income and deductions reflected in their withholding.

Contributions made by employees to the following programs continue to be treated as pretax monies for federal tax computations:
1. Commuter Program (CPP) up to the transit/parking pretax limits.
2. Federal Employees Dental and Vision Insurance Program (FEDVIP).
3. Health Benefits (HB):
4. Federal Employees Health Benefits (FEHB), unless the employee declined the pre-tax benefit.
5. USPS Health Benefits (USPS HB), only if the employee opted for pretax contributions.
6. Flexible Spending Accounts (FSA).
7. Health Savings Account (HSA).
8. Traditional Thrift Savings Plan (TSP).

Regardless of whether employees have completed a revised 2020 Form W-4, it is recommended that they visit irs.gov and complete a “paycheck checkup” using the Tax Withholding Estimator (see irs.gov/individuals/tax-withholding-estimator).

Reference: www.npmhu.org