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Federal Personnel and Payroll System (FPPS) |
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Federal Personnel and Payroll System User Group Representatives |
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Christine Zertuche-Rocha, Chief
Payroll Operations Division
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Tax Changes Implemented Pay Period (PP) 2022-17: States CO and NM |
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Please share this information with all impacted employees. The following tax changes were implemented in PP 2022-17. As a result, employees may see a change in their tax withholdings.
State Tax
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Colorado State Income Tax Withholding:
- The state income tax withholding formula has changed to support the option to reduce annual taxable wages.
- When an employee submits a Colorado Withholding Exemption Form (DR0004) with an amount on line 2, this amount will be used to reduce the state annual taxable wages.
- Datamart Query: Tax State = 08
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New Mexico State Income Tax Withholding:
- The state income tax withholding formula has changed to support the option to reduce annual taxable wages.
- New Mexico does not have its own W-4 form. When an employee submits a federal W-4 form marked "For New Mexico" with an amount in Step 4b, this amount will be used to reduce the state annual taxable wages.
- Datamart Query: Tax State = 35
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.
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