IRS – Tax Withholding Error in Pay Period 26

NTEU met with representatives from IRS’s Workforce Relations and payroll office to obtain an explanation regarding the error identified by the National Finance Center in Pay Period 26 that may affect employees’ federal tax withholdings (see attachment). The agency reported that due to a payroll processing error regarding employees’ tax exemptions, many employees’ taxes were either over-withheld or under-withheld in Pay Period 26. The IRS advised us that because Pay Period 26 is the first pay period of 2020, there will be no impact to employees’ 2019 tax liabilities. However, the National Finance Center is still in discussion with IRS regarding its next steps for rectifying the error. I will keep you informed on this issue as it develops.

If you have any questions or comments regarding this issue, please contact Frank Barczykowski, Deputy Director of Negotiations, via e-mail at