B-34335, JULY 10, 1943, 23 COMP. GEN. 16
Highlights
1943: I HAVE YOUR LETTER OF JUNE 30. AS FOLLOWS: REFERENCE IS MADE TO YOUR DECISION OF MAY 18. IT WAS HELD THEREIN THAT ANY SUCH RECOVERY MADE FROM THE RETIREMENT ACCOUNT OTHERWISE DUE A FORMER EMPLOYEE SHOULD EXCLUDE THE VICTORY TAX. SIMILAR QUESTION WILL ARISE WITH RESPECT TO THAT PORTION OF SUMS WITHHELD AFTER JULY 1. YOUR INSTRUCTIONS ON THIS POINT ARE RESPECTFULLY REQUESTED.
B-34335, JULY 10, 1943, 23 COMP. GEN. 16
LEAVES OF ABSENCE - COMPENSATION ADJUSTMENTS FOR OVERDRAWN LEAVE UPON SEPARATION FROM SERVICE - WITHHOLDING TAX THE AMOUNT OF THE INDEBTEDNESS OF A FORMER EMPLOYEE FOR OVERDRAWN LEAVE, ON AND AFTER JULY 1, 1943, UPON SEPARATION FROM SERVICE MAY BE RECREDITED TO THE APPLICABLE SALARY APPROPRIATION BY SET OFF AGAINST HIS RETIREMENT FUND CREDIT--- OTHERWISE AVAILABLE FOR SET OFF--- ONLY TO THE EXTENT OF THE NET AMOUNT OF HIS SALARY (INCLUDING 5 PERCENT CREDITED FOR RETIREMENT), AFTER DEDUCTION OF THE AMOUNT WITHHELD UNDER THE CURRENT TAX PAYMENT ACT OF 1943, DURING THE PERIOD OF THE OVERDRAWN EAVE; BUT IN ORDER THAT THE AMOUNT PAID FROM THE SALARY APPROPRIATION FOR THE OVERDRAWN LEAVE MAY BE FULLY RESTORED BY RECREDITING, ALSO, THE AMOUNT WITHHELD FOR THE TAX, THE MATTER SHOULD BE REFERRED TO THE CLAIMS DIVISION OF THIS OFFICE FOR APPROPRIATE ACTION. 22 COMP. GEN. 1046, AMPLIFIED.
ACTING COMPTROLLER GENERAL YATES TO THE PRESIDENT, UNITED STATES CIVIL SERVICE COMMISSION, JULY 10, 1943:
I HAVE YOUR LETTER OF JUNE 30, 1943, AS FOLLOWS:
REFERENCE IS MADE TO YOUR DECISION OF MAY 18, 1943 (B-34335) REGARDING RECOVERY FOR OVERDRAWN LEAVE. IT WAS HELD THEREIN THAT ANY SUCH RECOVERY MADE FROM THE RETIREMENT ACCOUNT OTHERWISE DUE A FORMER EMPLOYEE SHOULD EXCLUDE THE VICTORY TAX, WHICH ITEM WOULD BE FOR APPROPRIATE ACTION BY THE CLAIMS DIVISION OF YOUR OFFICE.
SIMILAR QUESTION WILL ARISE WITH RESPECT TO THAT PORTION OF SUMS WITHHELD AFTER JULY 1, 1943 APPLICABLE TO INCOME TAX, AND YOUR INSTRUCTIONS ON THIS POINT ARE RESPECTFULLY REQUESTED.
MORE SPECIFICALLY, THE REFERRED-TO DECISION OF MAY 18, 1943, 22 COMP. GEN. 1046, HELD AS FOLLOWS (QUOTING FROM THE SYLLABUS):
THE AMOUNT OF THE INDEBTEDNESS OF A FORMER EMPLOYEE FOR OVERDRAWN LEAVE UPON SEPARATION FROM SERVICE MAY BE RECREDITED TO THE APPLICABLE SALARY APPROPRIATION BY SET OFF AGAINST HIS RETIREMENT FUND CREDIT--- OTHERWISE AVAILABLE FOR SET OFF--- ONLY TO THE EXTENT OF THE NET AMOUNT OF HIS SALARY (INCLUDING 5 PERCENT CREDITED FOR RETIREMENT), AFTER DEDUCTION OF THE AMOUNT WITHHELD FOR VICTORY TAX, DURING THE PERIOD OF THE OVERDRAWN LEAVE; BUT IN ORDER THAT THE AMOUNT PAID FROM THE SALARY APPROPRIATION FOR THE OVERDRAWN LEAVE MAY BE FULLY RESTORED BY RECREDITING, ALSO, THE AMOUNT WITHHELD FOR VICTORY TAX, THE MATTER SHOULD BE REFERRED TO THE CLAIMS DIVISION OF THIS OFFICE FOR APPROPRIATE ACTION.
I PERCEIVE NO REASON WHY THE SAME PROCEDURE SHOULD NOT BE FOLLOWED WITH REGARD TO ADJUSTMENTS FOR DEDUCTIONS FROM COMPENSATION (REPRESENTING THE WITHHOLDING TAX) DURING PERIODS OF OVERDRAWN ANNUAL LEAVE ON AND AFTER JULY 1, 1943.