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Taxation percentages

USPS offers supplemental wages reminder

Supplemental wages
USPS wants employees to know that supplemental wages are taxed differently from normal wages.

The Postal Service is reminding employees that the percentages used to tax supplemental wages differ from normal taxation percentages.

Supplemental wages can include:

  • Annual leave exchanges
  • Awards
  • Back-pay awards
  • Prizes
  • Severance pay
  • Reimbursements for nondeductible moving expenses

Supplemental wages are subject to a withholding rate of 22 percent. Congress and the IRS determine taxation percentages.

The Postal Bulletin’s Feb. 1 edition has more information.

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