B-169375, JUN. 25, 1970
Highlights
TO THOMAS MORTON GITTINGS: THIS IS IN REPLY TO YOUR LETTER OF MARCH 5. ARE INCORRECT. HUYLER WAS MADE THROUGH INADVERTENCE. WE ARE INSTRUCTING OUR CLAIMS DIVISION TO PREPARE A SETTLEMENT REFLECTING THE CORRECT RATES OF OVERTIME COMPENSATION FOR THE PERIODS IN QUESTION. THE CORRECTED CERTIFICATE OF SETTLEMENT AND A CHECK IN PAYMENT THEREOF WILL BE FORWARDED IN DUE COURSE TO MR. ADJUSTMENTS RESULTING FROM ANY EXCESS WITHHOLDING ARE TO BE MADE IN CONNECTION WITH THE EMPLOYEE'S TAX RETURN FOR THE YEAR IN WHICH THE WITHHOLDING WAS MADE. WE HAVE BEEN ADVISED BY THE BOARD THAT MR. SINCE YOU NOW INDICATE THAT THE CLAIMANT DOES NOT DESIRE THE VIRGINIA TAX TO BE WITHHELD FROM THE SUPPLEMENTAL PAYMENT THE REVISED SETTLEMENT WILL OMIT THE VIRGINIA TAX WITHHOLDING.
B-169375, JUN. 25, 1970
TO THOMAS MORTON GITTINGS:
THIS IS IN REPLY TO YOUR LETTER OF MARCH 5, 1970, REGARDING THE CLAIM OF MR. HAROLD A. HUYLER.
YOU STATE THAT PURSUANT TO A POWER OF ATTORNEY YOU SUBMITTED A CLAIM TO US ON BEHALF OF MR. HUYLER FOR OVERTIME COMPENSATION AS AN EMPLOYEE OF THE BUREAU OF SAFETY OF THE CIVIL AERONAUTICS BOARD AND ITS SUCCESSOR, THE NATIONAL TRANSPORTATION SAFETY BOARD, DEPARTMENT OF TRANSPORTATION. THE BOARD FORWARDED OUR SETTLEMENT TO MR. HUYLER DIRECTLY INSTEAD OF THROUGH YOU AS HIS ATTORNEY AND REQUESTED A RELEASE AS A CONDITION OF PAYMENT. YOU ALSO STATE THE PAYMENTS FOR MARCH 11 TO 15, 1964, ARE INCORRECT. YOU REQUEST THAT WE DIRECT THE BOARD TO WITHDRAW ITS DEMAND FOR A SEPARATE RELEASE, DISCONTINUE ITS PRACTICE OF BYPASSING COUNSEL, FURNISH A CORRECTED COMPUTATION OF PAY, AND SEND A CORRECTED VOUCHER AND CHECK TO THE CLAIMANT IN YOUR CARE. YOU ALSO BELIEVE NO DEDUCTIONS SHOULD BE MADE FOR FEDERAL AND VIRGINIA INCOME TAXES.
THE BOARD HAS RETURNED THE ORIGINAL AND COPIES OF OUR SETTLEMENT AND HAS ADVISED THAT THE REQUEST FOR A SEPARATE RELEASE AND THE TRANSMITTAL OF THE SETTLEMENT DIRECTLY TO MR. HUYLER WAS MADE THROUGH INADVERTENCE. WE ARE INSTRUCTING OUR CLAIMS DIVISION TO PREPARE A SETTLEMENT REFLECTING THE CORRECT RATES OF OVERTIME COMPENSATION FOR THE PERIODS IN QUESTION. THE CORRECTED CERTIFICATE OF SETTLEMENT AND A CHECK IN PAYMENT THEREOF WILL BE FORWARDED IN DUE COURSE TO MR. HUYLER IN YOUR CARE.
WITH RESPECT TO THE WITHHOLDING OF FEDERAL INCOME TAX, THE PROVISIONS OF 5 U.S.C. 3401-3404 REQUIRE THE WITHHOLDING OF SUCH TAX ON ALL REMUNERATION FOR SERVICES PERFORMED BY AN EMPLOYEE FOR HIS EMPLOYER. ADJUSTMENTS RESULTING FROM ANY EXCESS WITHHOLDING ARE TO BE MADE IN CONNECTION WITH THE EMPLOYEE'S TAX RETURN FOR THE YEAR IN WHICH THE WITHHOLDING WAS MADE. SEE 35 COMP. GEN. 452 (1956). WITH RESPECT TO THE WITHHOLDING OF VIRGINIA INCOME TAX, WE HAVE BEEN ADVISED BY THE BOARD THAT MR. HUYLER HAS AUTHORIZED THE WITHHOLDING OF SUCH TAX FROM REGULAR SALARY PAYMENTS MADE TO HIM. HOWEVER, SINCE YOU NOW INDICATE THAT THE CLAIMANT DOES NOT DESIRE THE VIRGINIA TAX TO BE WITHHELD FROM THE SUPPLEMENTAL PAYMENT THE REVISED SETTLEMENT WILL OMIT THE VIRGINIA TAX WITHHOLDING. THE WITHHOLDING OF FEDERAL INCOME TAXES APPEARS TO BE REQUIRED BY THE REGULATIONS OF THE INTERNAL REVENUE SERVICE.
INASMUCH AS MR. HUYLER IS CURRENTLY EMPLOYED, WE ARE PLACING INSTRUCTIONS ON THE CERTIFICATE OF SETTLEMENT THAT THE AMOUNT COVERED THEREBY BE INCLUDED ON THE W-2 FORM COVERING THE CALENDAR YEAR 1970. HOWEVER, IT OCCURS TO US THAT FOR THE PURPOSE OF INCOME AVERAGING TO WHICH YOU REFER IT WOULD BE DESIRABLE TO FURNISH A COPY OF OUR SETTLEMENT TO THE INTERNAL REVENUE SERVICE SO AS TO ESTABLISH THE PERIOD COVERED BY THE PAYMENT. EXTRA COPY WILL BE TRANSMITTED FOR THAT PURPOSE.