DATE: Monday, October 5, 2026
The IBC Payroll Operations Division (POD) requests your assistance in providing documentation when former employees repay salary debts that were transferred to Client Accounting Offices (CAO). This information allows POD to update each affected employee’s 2026 Form W‑2, Wage and Tax Statement, to accurately reflect any full or partial repayments.
For active employees, POD can automatically update Form W-2 records when salary debts are repaid. Once an employee separates or retires, any outstanding salary debts are transferred to the agency’s CAO, and former employees submit repayments directly to that office. For this reason, the repayments must be reported to POD so we can adjust the employee’s Form W-2 to show the full or partial repayment. Please note that this reporting requirement applies only to salary debts and does not include other types of debts, such as health benefits.
To ensure accurate 2026 Form W‑2 reporting, please email all salary debt and repayment notifications from 2026 to POD’s Debt Management Branch at DMB_General@ibc.doi.gov. This documentation should be received by December 4, 2026, and it should include:
- A copy of the bill marked “Paid.”
- The repayment date (or dates, if multiple payments).
- The debt identification number used when the debt was transferred.
Submitting this documentation initiates the final steps in the collection process, including updating applicable wages and recovering Old-Age, Survivors and Disability Insurance (OASDI) and/or Medicare taxes (both employee and agency portions). These updates also ensure the agency receives credit for the recovered taxes. Notifications received after December 4, 2026, may result in issuing a Form W‑2 C, Corrected Wage and Tax Statement, to the former employee.
Resources
Questions
- If you have any questions, please contact John Castillo at John_A_Castillo@ibc.doi.gov.