USPS Calendar Year-End Close Manual –
Calendar Year-End Close Overview

Overview

This USPS Calendar Year-End Close manual includes information you will need to process and distribute employee W‑2s and to report tax information to the Social Security Administration and Internal Revenue Service (IRS).

Each of the calendar year-end (CYE) processes listed below is explained in detail in its corresponding manual section:

1. Recording payments made outside USPS to the USPS history files so these payments are included in W‑2 reporting.
2. Balancing employee tax information and ensuring all required amounts have been withheld and remitted to IRS by reconciling USPS reports 3011 and 527 that depict employees with out of balance records.
3. Moving CY files to prior year and establishing NY files. (Process any CY payments before the file split).
   • CY/NY file split.
   • NY files are activated after the file split.
   • Processes for CY reversals, adjustments and refunds will change after the file split.
   • BRP flags are reset.
4. Generating W‑2s and related information:
   • Request report 83, W‑2 posting report, as often as needed to resolve any errors and to post W‑2 information.
   • Fax the W‑2 print request form in the appendix to USPS representatives at (512) 475-0887; the Comptroller’s office will print and stuff W‑2 forms for your agency.
   • USPS will electronically generate report 85 to report wage and tax information to the Social Security Administration.

back to top

CYE Queries

As part of the CYE process, USPS representatives will run a number of queries to identify situations that may require your attention. Some of the queries you may receive are:

• Deceased employees: Report wages paid after death on Form 1099-Misc; USPS does not produce 1099s.
• OASDI taxable greater than maximum.
• Employee OASDI taxable, times .062, not equal to taxes withheld.
• Employer OASDI taxable, times .062, not equal to taxes withheld.
• Employee HI not equal to Employer HI.
• Employees claiming exemption from FIT: A new Form W-4 is required annually.
• Employees claiming over 10 exemptions on Form W-4.
• Out-of-state employees: Each agency is responsible for state tax reporting.
• Deferred compensation deductions over the annual maximum.
• Employees participating in 457 plans in catch-up status: Catch-up status is cleared during the file split and must be reentered if applicable.

If you encounter problems or have questions about the calendar year-end close process, please contact your assigned USPS representative or call the help desk at (512) 463-4008.

back to top

2020 Year-End Schedule