United States Department of Agriculture

Office of the Chief Financial Officer

National Finance Center

P.O. Box 60000 New Orleans Louisiana 70160

This bulletin provides information concerning: (1) Federal income tax withholding formula changes for calendar year (CY) 2015 and (2) submission of Internal Revenue Service (IRS) Form W-4, Employee’s Withholding Allowance Certificate, to claim total tax exemption from Federal income tax for CY 2015.

Federal Income Tax Withholding

Effective January 1, 2015, the Federal income tax withholding tax formula changed. The Single or Head of Household and Married withholding tables changed and the exemption allowance increased from $3,950 to $4,000.

Beginning with salary payments for Pay Period 25, 2014, Federal income tax was automatically withheld in accordance with the new formula. No action on the part of the employee or the personnel office is necessary.

Attached is the Federal Income Tax Withholding Information.

To view the updated tax formula, go to the National Finance Center's (NFC) Home Page ( https://www.nfc.usda.gov). Under the Popular Topics, click Tax Formulas and select Federal Formulas from the Tax Formula Map page. Select Federal Income Tax Information.

W-4, Employee's Withholding Allowance Certificate

Employees who intend to claim total Federal tax exemption for CY 2015 must submit a new W-4 prior to February 22, 2015. Effective Pay Period 04, 2015, employees who claimed total exemption for CY 2014 and who have not filed a new W-4 for CY 2015 will have Federal taxes withheld as single taxpayers with zero withholding allowance. A W-4 filed for the prior year does not extend tax exemption into CY 2015. A new W-4 must be filed for CY 2015.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.

/s/
ANITA H. FINCHER, Director
Government Employees Services Division

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