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USPS Process Guide –
Chapter 4: Employee Maintenance –
H0BUD, H0ATX – Entering and Correcting Employee Work and Resident State Information and Local Tax Information

Screen: H0BUD, H0ATX
Prerequisites: Review state tax laws
Key Fields:

H0BUD
AGENCY NUMBER, EMPLOYEE SSN

H0ATX
COMPANY, EMPLOYEE NUMBER, COUNTRY CODE, TAX UNIT, STATE CODE, LOCAL CODE

Note: Use H0BUD to indicate which state and local taxing entities exist for the employee. Use H0ATX to update the employee’s state and local tax status and information. See Appendix K – Local, State and Federal Codes. Verify HO4U1 to see if the taxing entity is set up for your agency. If not, please submit a Letter of Authorization (LOA) with the contact information and tax ID.

Step Action
1 Access H0BUD.
2 Enter R in the SUBCOMMAND field.
3 Enter the following fields as required:
AGENCY NUMBER (Key)
EMPLOYEE SSN (Key)
RES ST (Optional)
Indicates the state in which the employee resides. Enter this field only if the resident state is different from the work state. See Appendix K – Local, State and Federal Codes for a list of state codes.
RES LOC (Optional)
Indicates the local taxing entity in the employee’s resident state. Defaults to 00.
WORK STATE (Optional)
Indicates the employee’s work state.
WORK LOCAL (Optional)
Indicates the local taxing entity in the employee’s work state. Defaults to 00 (no local taxing entity).
TAX % (Required)
The value .999 (default) must be entered in this field.
2ND-5TH WORK STATE (Optional)
These fields are not currently used.
2ND-5TH WORK LOCAL (Optional)
These fields are not currently used.
2ND-5TH TAX % (Optional)
Not currently used for the second through fifth work state/local fields.
4 Press Enter to process the transaction.
5 Access H0ATX if you wish to change the system default for how state and local taxes are withheld for this employee.
6 Enter R in the SUBCOMMAND field.
7 Enter the following fields as required:
  • COMPANY (Key)
  • EMPLOYEE NUMBER (Key)
  • COUNTRY CODE (Key)
  • TAX UNIT (Key)
  • STATE CODE (Key)
  • LOCAL CODE (Key)

State Income Tax

STATUS (Required)
Enter a value to indicate the method used to calculate the employee’s state income tax (SIT). See Appendix K – Local, State and Federal Codes for definitions of status codes.
MAR ST (Required)
Enter a value to indicate the employee’s marital status for state and local tax calculations. If no value is entered, this field defaults to the value in the FILE STATUS field on H0BUD.
1 Single or married filing separately (default)
2 Married filing jointly
3 Head of household
EXEMPTIONS (Required)
Enter the number of exemptions for withholding SIT (defaults to 0). The system uses this amount for tax calculations if the STATUS field contains a value of 4 through 9.
AMT (Optional)
The whole dollar amount of SIT to withhold. The STATUS field must contain a value of 3. Enter 00500 to withhold a flat $500 of state income tax.
FACTOR (Optional)
The percentage of SIT to withhold. The STATUS field must contain a value of 2. Percentages must be in decimal format; for example, enter .175 for 17.5 percent.
EXT AMT (Optional)
The whole dollar amount to withhold in addition to the calculated SIT amount. The STATUS field must contain a value of 3 or 6. Enter 00050 to withhold an additional $50 of state income tax.
EXT FACTOR (Optional)
The percentage of tax to withhold in addition to the calculated SIT amount. The STATUS field must contain a value of 5.

Local Income Tax

STATUS (Required)
Enter a value to indicate the method used to calculate the employee’s local income tax (LIT). See Appendix K – Local, State and Federal Codes for definitions of status codes.
EXEMPTIONS (Required)
Enter the number of exemptions for withholding LIT (defaults to 0). The system calculates taxes using this amount if the STATUS field contains a value of 4, 5 or 6.
AMT (Optional)
The whole dollar amount of LIT to withhold. The STATUS field must contain a value of 3. Enter 00500 to withhold a flat $500 of local income tax. Enter 00050 to withhold an additional $50 of local income tax.
FACTOR (Optional)
The percentage of LIT to withhold. The STATUS field must contain a value of 2. Enter percentages as a decimal; for example, enter .175 for 17.5 percent.
EXT AMT (Optional)
The whole dollar amount to withhold in addition to the calculated FIT amount. The STATUS field must contain a value of 3 or 6.
EXT FACTOR (Optional)
The percentage of tax to withhold in addition to the calculated LIT amount. The STATUS field must contain a value of 5.
SPECIAL LOCAL STATUS (Optional)
1 Employee is exempt from special local taxes (Default)
4 Calculate and withhold special local taxes
DISABILITY INS STATUS (Optional)
Defaults to 1. Do not change this field.
8 Press Enter to process the transaction.