USPS Process Guide –
Chapter 9: Deductions –
Introduction

H0ZUC is the master file for deductions. If an employee has had a deduction withheld in the current calendar year, it appears on H0ZUC with YTD totals as well as current frequency (whether the deduction is “turned on” or “turned off”). In order for a deduction to be set up for an employee, it must be listed for your agency on H0VCD.

Some deductions are set up automatically when an employee is hired. Some deductions require processing to begin on H0ZUC and then be linked to a Y “subscreen”; others are set up directly on H0ZUC, but first need preliminary setup on another screen; and some are set up on a separate screen that updates H0ZUC. Other deductions are entered on ERS OnLine and then electronically transferred to USPS.

Employee deductions are taken from the employees’ pay, and memo deductions (state-paid benefits) are paid by the agency. Below are listed the various categories of deductions. Memo deductions are designated by an M after the deduction. The processes for setting up or changing these deductions can be found on the following pages.

Automatically Set Up on H0ZUC When Assigned

Set Up Only on H0ZUC

Set Up on HNY Subdeduction Screens

Set Up on a Separate Screen That Updates H0ZUC

Set Up in ERS and Transferred to USPS (HMTU1 and H0ZUC)