DATE: Wednesday, November 19, 2025
Please share this information with all appropriate staff.
In partnership with your department/agency, the IBC aims to ensure that each employee’s pay record is accurate and complete before the close of the 2025 pay year. The instructions on the Form W 2, Wage and Tax Statement, outlines information on certain taxable and non-taxable income and fringe benefits. Please use the additional guidance provided in this message to supplement those instructions when assisting employees.
To ensure proper processing for the 2025 wage and tax year, all outstanding tax-related documents must be submitted as soon as possible, but no later than November 28, 2025. Documents received after this date will require a Form W-2C, Corrected Wage and Tax Statement for the 2025 tax year. For tax purposes, income is reported in the year the payment is made.
When forwarding documents to the IBC, please use the POD-27 Transmittal to Payroll Operations Division, along with the applicable forms (POD-16 and/or POD-18) outlined below. In addition, please follow the submission instructions provided below.
As an alternative to the POD-27, you may use the Entitlement Interface File. This option eliminates the need for manual entry of mass taxable and fringe benefit pay codes, allowing them to be loaded directly into FPPS. For more information on using the Entitlement Interface File (IFIL0284), refer to the FPPS User Group page on IBC Customer Central.
Please note: Only the pay codes listed in this table may be used with the Entitlement Interface File:
| Pay Code | Description |
|---|---|
| EFB | Fringe Benefit |
| EPT | Parking – Taxable |
| ETT | Transportation – Taxable |
| FMG | Fannie Mae/Freddie Mac Gym Reimbursement |
| LCP | Life Cycle Payment |
| PCR | TSA Pre-Check Reimbursement |
| TVL | Travel Stipend |
| PLC | Pro Licensing/Certification Reimbursement |
| PLI | Pro Liability Insurance Reimbursement |
To ensure an accurate Form W-2, please pay close attention to the following areas:
- Other Taxable Income: If not previously submitted, other taxable income must be reported by completing and forwarding the POD-16 Other Income Summary Sheet. Please follow the submission instructions provided below.
This category of income includes, but is not limited to:- Change of station allowances, including home marketing incentive payments.
- Indefinite travel payments.
- Fringe Benefits: If not previously submitted, taxable fringe benefits must be reported by completing and forwarding the POD-18 Report of Taxable Fringe Benefits, or by using a spreadsheet to report the Child Care Subsidy*. Please follow the submission instructions provided below.
This category of income includes, but is not limited to:- Child Care Subsidy* – Any subsidy exceeding $5,000 is taxable.
- Fitness/Wellness – Reimbursements for fitness programs must be reported as taxable income.
- Qualified Transportation Benefits (parking and transit) – Amounts reimbursed in excess of $325 per month are taxable.
- Transportation (taxable) – Use of government or leased vehicles for commuting, or use of limo services, is considered a taxable fringe benefit.
- Taxable Non-Monetary Awards – The fair market value of any significant non-monetary award presented to an employee as recognition must be included in the employee’s Form W-2 as taxable earnings. Examples of items that could be considered significant for this purpose are pen and pencil sets, clocks, jackets, watches, gift certificates, tickets to events, or similar items. Please follow your agency’s policy regarding non-monetary awards that must be considered taxable earnings as fringe benefits.
- Paid Bills for Collection – Repayment of Salary Debts: Submit a copy of any bill paid to your office for salary overpayment. For additional guidance, please refer to the User Group communication dated August 25, 2025, titled Repayment of 2025 Salary Debts for Former Employees. Please mark the submission with “Salary Indebtedness Paid” and include:
- The debt identification number used when the debt was transferred.
- The date of payment.
- An authorized signature.
- Undelivered Salary Checks: Salary checks that cannot be delivered to employees by December 31, 2025, must be submitted for cancellation to the Review and Analysis Branch (Interior Business Center, One Denver Federal Center, Building 48, Mail Stop D-2613, Denver, CO 80225) as soon as possible.
- Checks returned to the Review and Analysis Branch by December 5, 2025, may be processed as an adjustment in Pay Period 2025-26.
- Checks received after December 5, 2025, will require a manual year-end adjustment.
- Checks received after December 26, 2025, will require issuance of a Form W-2C.
Taxable Corrections and Adjustments:
Please submit any current year taxable corrections or adjustments occurring in late November and December to your payroll processing section promptly.
- Adjustments that cannot be processed in the payroll cycle ending Pay Period 2025-26, December 13, 2025, will require a manual year-end adjustment.
- Adjustments received after December 26, 2025, will require issuance of a form W-2C.
Submission Instructions for POD-27 and Associated POD-16 and/or POD-18:
These are the acceptable ways to submit documents to your IBC Payroll Processing Sections:
- For documents that contain Personally Identifiable Information (PII):
- Secure Transport
- Secure Fax Transmission to 303-236-1011
- For documents that do NOT contain PII:
- Email the Payroll Operations Branch at POD_POB_WIP@ibc.doi.gov.
Resources:
Questions:
- Please contact the Customer Support Center at Payroll_Helpdesk@ios.doi.gov or 1-866-FOR-1-CSC (1-866-367-1272).