Nothing in section 5596 of title 5, United States Code, or this subpart shall be construed as authorizing the setting aside of an otherwise proper promotion by a selecting official from a group of properly ranked and certified candidates. [46 FR 58275, Dec. 1, 1981, as amended at 53 FR 18072, May 20, 1988, and 53 FR 45886, Nov. 15, 1988]
Sec. Appendix A to Subpart H of Part 550--Information on Computing
Certain Common Deductions From Back Pay Awards
To determine the net back payment owed an employee, an agency must make certain required deductions. (See Sec. 550.805(e)(3).) To compute these deductions, an agency must determine the appropriate base or follow other rules, consistent with applicable law. Some deductions, such as tax deductions, are not subject to OPM regulation. To assist agencies, this appendix summarizes the rules for certain common deductions. For further information on Federal tax deductions from back pay awards, please contact the Internal Revenue Service directly or review relevant IRS publications. ----------------------------------------------------------------------------------------------------------------
(a) Mandatory employee retirement contributions.......................... Compute the deduction based on the
basic pay portion of gross back pay
before adding interest or applying
any offset or deduction.(b) Life insurance premiums.............................................. Compute the deduction based on the
basic pay portion of gross back pay
before adding interest or applying
any offset or deduction.(c) Social Security (OASDI) and Medicare taxes........................... Compute the deduction based on
adjusted gross back pay (gross back
pay less the offset for outside
earnings under Sec. 550.805(e)(1),
but before adding interest). The
deduction may be reduced dollar-for-
dollar by the amount of any Social
Security or Medicare taxes that were
withheld from erroneous payments
made in the same calendar year as
the back pay award, but only if--
(1) Those erroneous payments were
actually recovered by the
Government by offsetting the back
pay award as provided in Sec.
550.805(e)(2); and
(2) Those withheld taxes have not
already been repaid to the
employee.
Note: Social Security taxes are
subject to the applicable Social
Security tax wage base limit. In
addition, see IRS guidance regarding
possible correction and refunding of
Social Security and Medicare taxes
withheld from erroneous payments in
a prior calendar year.(d) Federal income tax withholdings...................................... Compute the deduction based on
adjusted gross back pay (gross back
pay less the offset for outside
earnings under Sec. 550.805(e)(1),
but before adding interest) less any
part of back pay not subject to
income tax deductions, such as
nonforeign area cost-of-living
allowances and contributions to the
Thrift Savings Plan that are
deducted from the pay of the
employee. The deduction may be
reduced dollar-for-dollar by the
amount of any Federal income taxes
withheld from erroneous payments
made in the same calendar year as
the back pay award, but only if--
(1) Those erroneous payments were
actually recovered by the
Government by offsetting the back
pay award as provided in Sec.
550.805(e)(2); and
(2) Those withheld taxes have not
already been repaid to the
employee.
Note: Additional Federal income tax
withholdings from the interest
portion of the back pay award may be
required by the Internal Revenue
Service in certain specific
circumstances.---------------------------------------------------------------------------------------------------------------- [64 FR 69179, Dec. 10, 1999]