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Tax Documents

Tax documents are processed for city, county, State, and Federal taxes. Taxes are withheld each pay period through payroll deduction based on a formula or a percentage of earnings.

Treasury has entered into an agreement with taxing entities (city, county, State, territorial, and the Republic of Panama) for mandatory tax withholding based on place of employment (i.e., duty station). The employees should complete the applicable tax form to authorize withholding and claim exemptions, as applicable. In most cases, taxes are withheld each pay period based on the processing of a tax document. If a document is not processed, PPS withholds taxes at the highest rate applicable. Withholding formulas are located on the HR and Payroll Clients page. Log on to the Internet and go to the NFC Web site (www.nfc.usda.gov). Select the HR and Payroll Clients page from the My NFC drop-down menu. Select the Publications icon and U.S. Income Tax Formulas to view the Tax Information links. A tax record is established at the time the accession personnel action and/or tax form are processed. Some local taxes are computed based on a percentage of gross wages or on a specific dollar amount designated by the taxing entity and do not require the declaration of exemption information. In these cases, the entry of a tax certificate is not required.

Several taxing entities that do not have agreements with the Secretary of the Treasury have been established in the database for voluntary tax withholding. Tax data must be processed for these entities for taxes to be withheld. Voluntary withholding is based on residence. An employee may voluntarily elect to pay tax based on residence if:

  • The residence city, county, or State is established in TMGT.
  • The mandatory duty station tax is waived (if allowed).
  • The residence tax locality on the form agrees with the residence tax locality of the duty station.

A new tax certificate may be processed at any time to change an employee’s tax information. If the employee’s duty station or residence changes and the new local tax location has an agreement with Treasury for mandatory withholding, a new tax certificate should be processed. All previous exemptions, additional withholdings, etc., will be removed and must be reprocessed, if applicable. If a new tax certificate is not processed, the PPS will begin withholdings at the highest taxable rate if the duty station has a mandatory tax withholding agreement.

For processing purposes, the tax year usually begins in Pay Period 25 and ends in Pay Period 25 because payments made during this timeframe are payments made within 1 year. All taxes withheld for those inclusive pay periods are reported on the IRS Form W-2, Wage and Tax Statement.

Employees may authorize an amount to be withheld from their salary each pay period in addition to the amount automatically withheld in accordance with the income tax formula. Most exemption certificates allow for additional withholding.

Note: Exemptions must be claimed when indicating additional withholding.

Viewing tax information:

  • PINQ Program PQ032, Payroll Listing
  • IRIS Program IR104, Federal Tax
  • IRIS Program IR105, State Tax
  • IRIS Program IR106, City Tax
  • IRIS Program IR107, County Tax
  • The following TMGT validate tax data for processing:
  • TMGT Table 007, City Tax, City Name and Address
  • TMGT Table 008, County Tax, County Name and Address
  • TMGT Table 009, State Tax Name and Address