Federal Personnel and Payroll System (FPPS)

MEMORANDUM

DATE:

February 2, 2022

TO:

Federal Personnel and Payroll System User Group Representatives

FROM:

Christine Zertuche-Rocha, Chief

Payroll Operations Division

SUBJECT:

Tax Changes Implemented Pay Period (PP) 2022-03: States AR, LA, MN, and MS

Please share this information with all impacted employees.  The following tax changes were implemented in PP 2022-03.  As a reminder, tax changes are not retroactive to employees’ withholdings.

State Tax

• Arkansas Income Tax Withholding:
  • The flat tax rate on supplemental wages has been updated from 5.9% to 5.5%.
  • The wage threshold to adjust annual net taxable income has been updated from less than $88,001 to less than $90,601.
  • The standard tax table has been updated.
  • The tax credit formula for employees who qualify for the low-income tax tables has been updated.
  • Datamart Query: Tax State = 05

• Louisiana Income Tax Withholding:
  • The income tax table for filers claiming zero or one personal exemption has been updated.
  • The income tax table for filers claiming two personal exemptions has been updated.
  • The tax credit table for filers claiming zero or one personal exemption has been updated.
  • The tax credit table for filers claiming two personal exemptions has been updated.
  • Datamart Query: Tax State = 22

• Minnesota Income Tax Withholding:
  • The annual amount per exemption has been updated from $4,350 to $4,450.
  • The Single and Married tax tables have been updated.
  • Datamart Query: Tax State = 27

• Mississippi Income Tax Withholding:
  • The standard tax table has been updated.
  • Datamart Query: Tax State = 28

You may execute Datamart queries to identify employees in affected state taxing areas. For Combined File Ad-Hoc query/analysis of applicable States:  add STE Tax State 1 = (State Code above) or STE Tax State 2 = (State Code above) to the filter or prompt lines.

The Interior Business Center (IBC) Payroll website is updated frequently; you may view the state tax formulas here:  http://www3.ibc.doi.gov/services/hr/payroll/payrolltopics/taxFormulas.cfm.

If there are any questions, please call the IBC Customer Support Center at 720-673-9958 (interim contact number) or by email at Payroll_Helpdesk@ios.doi.gov.

Resources:

• User Group Distribution List changes: Please contact Lorraine Manzanares, lorraine_m_manzanares@ibc.doi.gov. All requests should come from an Agency User Group Representative.
• FPPS - Customer Central
  • User Group Messages - All
    • User Group Payroll Announcements