Purpose:

The purpose of this bulletin is to notify agencies of a new earnings code that will be used to correct employee tax balances.

Affected Employees:

All employees who require a tax balance adjustment due to having a Q22 overpayment in paycheck dated January 4, 2023, are affected.

Background:

All Q22 overpayments applied to administration check dated January 4, 2023, reduced the employees taxable gross in error. To correct the employees taxable gross, a one-time use, earnings code has been created to increase the employees taxable gross only. The new earnings code will be applied to paycheck dated May 24, 2023, and employees will see an increased taxable gross and most likely an increase on their tax withheld.

Effective Dates:

The new earnings code will be applied to the May 24, 2023, paycheck.

OSC Actions:

OSC has created a new Earnings Code TBA (Tax Balance Adjustment) to correct employee tax balances. OSC will identify all employees who have had their taxable gross lowered in error in the paycheck dated January 4, 2023. That amount will be applied using code TBA to the check dated May 24, 2023, to increase the taxable gross and ensure taxes are correctly withheld.

Agency Actions:

Notify affected employees to expect the increase in taxes in the paycheck dated May 24, 2023. Answer any questions from employees asking about the TBA earn code or the increase in their taxable gross.

Questions:

Questions regarding this bulletin may be directed to the Tax and Compliance mailbox.