Skip to content
Breadcrumbs

USPS Process Guide –
Chapter 9: Deductions –
HOEU1, H0ZBT – Bankruptcies (16) and IRS Tax Levies (19)

Screens: HOEU1, H0ZBT
Prerequisites:

A court order to levy the employee’s wages (bankruptcy or tax levy).

A new mail code must be established for an employee on TINS before USPS can accept a new setup and generate payment for the third-party payee. Follow TINS procedures to set up a new mail code for the employee. If you have questions, please call Payment Services at (512) 936-8138.

Once established, you must receive authorization from the bankruptcy trustee or the taxing authority to change the deduction.

Agencies may use Report 599, a transmittal letter for bankruptcy and tax levy vendors, by setting up an address code and vendor name and address on HOEU1 and requesting Report 599 on T02U1. Agencies choosing not to utilize the transmittal letters should bypass HOEU1 and proceed directly to H0ZBT.
Key Fields: AGENCY, EMPLOYEE SSN, DEDUCTION NO
Step Action
1

Access HOEU1.

– OR –

If not utilizing transmittal letters, proceed to Step 5.
2

Enter I or R in the SUBCOMMAND field.

Note: Records can be deleted with a D in the SUBCOMMAND field.
3 Enter the following fields as required:
AGENCY (Key)
EMPLOYEE SSN (Key)
DEDUCTION NO (Key)
16 Bankruptcy
19 Tax Levy
ADDRESS CODE (Required)

Enter a three-character, numeric code that identifies the third-party payee name and address. This field defaults to 000.

Note: This field can be used to build Report 599, a transmittal letter to bankruptcy and tax levy third-party payees. If agencies choose not to use the transmittal letters, this field should remain 000.

PAYEE NAME (Required)

Enter the name of the third-party payee.

Note: If agencies choose not use Report 599 as a transmittal letter, this field should remain blank (spaces). Payee name and address displays from TINS on H0ZBT for bankruptcy and tax levy payees.

ADDRESS LINE 1 (Required)
Enter the first line of the third-party payee address.
ADDRESS LINES 2-4 (Optional)
CITY (Required)
Enter the city of the third-party payee address.
STATE (Required)
Enter the two-digit state code of the third-party payee address. Press F2 for valid values (Decode Table 820).
ZIP CODE (Required)

Enter the ZIP code of the third-party payee address.

Note: CITY, STATE and ZIP CODE are validated against TINS for accuracy.
4 Press Enter to process the transaction.
5 Access H0ZBT with agency number, SSN and deduction number.
6 Enter I or R in the SUBCOMMAND field.
7 Enter the following fields as required:
AGENCY (Key)
EMPLOYEE SSN (Key)
DED NO (Key)
16 Bankruptcy
19 Tax Levy
AMOUNT OR PERCENT (Required)

Enter a dollar amount to be deducted each pay period as specified in the court order.

– OR –

Enter a percent of the employee’s pay to be deducted each pay period as specified in the court order.

FR (Required)
00 Do not take this deduction
09 Deduction on every pay period

Note: Defaults from Table 989.

UTILITY (Display)
Position 1 corresponds to AMOUNT or PERCENT.
0 Amount
1 Percent

Position 7 corresponds to the DEDUCTION NUMBER.

1 Bankruptcy (deduction number 16)
2 Tax levy (deduction number 19)
START DT (Display)
The START DATE field is not updateable for bankruptcy or tax levy. Once established, the deduction will be taken on every payroll.
END DT (Optional)
Indicates the date to discontinue the deduction.
CASE NO (Optional)
Indicates the case number identifying the bankruptcy or tax levy.
EXEMPT AMT (Optional)
For tax levy deduction only. This field can be used by the agency to enter the amount exempt from tax levy based on the IRS Table for Figuring Amount Exempt from Levy on Wages, Salary and Other Income – Forms 668-W (C) (DO) and 668-W (ICS). This amount would then be available for USPS to utilize during payroll calculation to ensure the appropriate tax levy amount is withheld.
TINS MAIL CODE (Optional)
Enter the mail code that corresponds to the third-party payee that has been established in TINS.
ADDRESS CODE (Required)

Enter a three-character, alphanumeric code that identifies the third party payee name and address. This field defaults to 000.

Note: This field can be used to build Report 599, a transmittal letter to bankruptcy and tax levy third-party payees. If agencies choose not to use the transmittal letters, this field should remain 000.

PAYEE NAME, ADDRESS 1–5 (Display)
Information displayed based on the TINS mail code entered in TINS.
8 Press Enter to process the transaction.