SSA - POMS: GN 02410.017 - Requesting Voluntary Tax Withholding (VTW)

A. VTW requests

1. IRS Form W-4V (Voluntary Withholding Request)

The beneficiary or his or her representative payee must complete and sign an Internal Revenue Service (IRS) Form W-4V in order to start, stop or change VTW.

Send the beneficiary a Form W-4V at his or her request. If a Customer Service Representatives (CSR) representative (TSR) or SPIKE mails out the form to a beneficiary, enclose a courtesy return envelope addressed to the field office (FO) of jurisdiction.

Return all unsigned forms to the beneficiary or his or her representative payee for signature.

NOTE: A W4-V is not required when a claimant requests VTW during the filing of an initial Modernized Claims System (MCS) claim. Enter the VTW information on the MCS VTW screen. The VTW request prints with the application that the beneficiary will review. The claimant's review and attestation of the MCS claim, including the VTW request, satisfies the IRS signed statement requirement. For VTW coding on the Voluntary Tax Withholding (VTWH) screen, see MSOM MCS 009.012.

2. Multiple VTW requests

We can accept up to three withholding actions at one time. A separate W-4V is required for each beneficiary requesting VTW, and for each separate action (or rate change) requested.

B. Processing VTW requests

Typically, the FO or Teleservice Center receives and processes VTW requests. When the FO input creates an exception, and in certain multiple entitlement situations, the Processing Centers (PC) will need to input the VTW request. For information regarding VTW requests for multiple entitlement cases, see GN 02410.017.D

1. SSA Systems Input

a. MCS Application

Enter the VTW information on the Voluntary Tax Withholding (VTWH) screen. For more information on the MCS VTWH screen, see MSOM MCS 009.012.

b. Postentitlement Online System (POS)

Enter the information from the W-4V via the Postentitlement Voluntary Tax Withholding (PEVW) screen in POS. For more information on the PEVW screen, see MSOM T2PE 003.020.

c. Manual Adjustment, Credit, and Award Data Entry (MACADE)

Enter the information from the W-4V via the Voluntary Tax Request (VT) screen in MACADE. For more information on the VT screen, see SM 00842.058.

2. Requests for future withholding

If the VTW request is for future date(s) only:

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Input 0 percent for the current month; and
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Input the subsequent VTW request percentage(s) and effective date(s).

Request an additional W-4V form for each separate action requested on a record.

3. Retaining W-4V

After successfully inputting the W-4V information, scan the signed W-4V into the evidence portal. Review the document for accuracy and shred or destroy the original document.

4. Notifying the Beneficiary

Notify the beneficiary or his or her representative payee when we take action to effectuate, terminate or change the VTW (for example, when we process an immediate request or a future request).

If the beneficiary or his or her representative payee requested VTW during the MCS application, include VTW language in the Notice of Award. In the event a beneficiary or his or her representative payee makes a request outside of the MCS application, send a notice.

C. VTW examples

1. Closed period VTW request with multiple withholding rates

In January, Anna submits three separate W-4V forms to request a 7 percent VTW beginning immediately, a change to 12 percent VTW in August, and termination of VTW (0 percent) in November, all in the same year. We can complete and input these requests at one time.

2. VTW request received too late for requested date of initial withholding

In late March, Paul requests immediate VTW of 7 percent effective with the payment issued in April, current operating month (COM) 3. However, we have to begin withholding with the payment issued in May, COM 4, because the request was received and processed after the COM change and it is too late to begin VTW with the payment issued in COM 3.

3. VTW request for future date

In March, Marie submits a W-4V form to request a 7 percent VTW effective with the payment issued in July. Input 0 percent for March with a change to 7 percent effective in July.

4. More than three VTW rate requests

In September 2017, Andre submits three separate W-4V forms to request VTW of 7 percent immediately, 10 percent in March 2018 and 22 percent in July 2018. We can input all three actions at one time.

In December 2017, he submits an additional change to his initial VTW requests. He now requests 12 percent VTW effective September 2018, but wants his earlier withholding requests to remain in effect until then. We cannot accept the September 2018 change at this time because:

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There are currently three VTW occurrences coded; and
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We can only input three VTW actions at one time.

We will instruct Andre to come back no earlier than March 2018 to request the September 2018 change.

5. VTW requests with Railroad Retirement Board (RRB) benefit involvement

Martha is in LAF E status as a RRB annuitant. She requests VTW of 7 percent of her monthly benefit amount. Since Paula may also be receiving an RRB annuity, advise her to check with RRB to see if this withholding will adversely affect her RRB annuity. If she still wants VTW after checking with the RRB, process her request.

D. Dual entitlement (DE) and VTW systems instructions

1. Basic rules for DE

When the request involves DE:

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Apply VTW requests to any record on which the beneficiary is or will be receiving Title II payments (LAF codes C, D, AD or E).
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Keep DE payments combined on one record if the beneficiary requests us to tax each benefit at the same tax rate.
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Split combined DE payments to their individual records if the beneficiary requests that we withhold taxes from each record at a different tax rate.

NOTE: MCS will process a DE claim as long as the requested VTW percentages are the same.

E. DE case scenarios

1. Dually Entitled beneficiary submits one W4-V

a. DE payments combined

Most often, when a dually entitled beneficiary is receiving one combined DE payment, he or she will request VTW on the total payment.

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Process the VTW request as if DE were not involved;
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Have the beneficiary complete one W-4V form; and
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Input the request on the full DE payment Claim Account Number (CAN)/Beneficiary Identification Code (BIC) via Post Entitlement Online System (POS) or Manual Adjustment, Credit, and Award Data Entry (MACADE).

The other DE account does not need VTW request data (VTAX REQ), as long as we are not issuing payments from that account.

When a beneficiary files a claim that will result in a combined DE payment, the same filing rules apply as in post entitlement (PE) actions except that an MCS application may replace the W-4V form.

NOTE: Since VTW and DE are involved, process the award via MACADE. Do not code VTAX REQ data on any other DE record where we are not issuing payments.

b. DE payments separate

If a dually entitled beneficiary is receiving separate entitlement payments and requests the same tax rate withheld from each record:

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Have the beneficiary complete one form identifying the two CAN/BICs to which we should apply the tax rate; and
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Input an action against each active DE payment records’ CAN/BIC via POS or MACADE.

The same filing rules apply when awarding separate DE payments as in PE actions, except that the MCS application may replace the W-4V form. Be sure to post VTAX REQ data on all active payment records.

2. Dually Entitled Beneficiary makes multiple VTW requests

a. DE payments separate

Complete two W-4V forms if a dually entitled beneficiary wants different tax rates withheld from two active records.

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Have the beneficiary complete one W-4V for each record indicating the respective VTW percentages; and
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Process each request against the respective DE payment via POS or MACADE.

The same filing rules apply if a beneficiary is receiving separate DE payments, except that the MCS application(s) may replace the W-4V forms. VTAX REQ data must be on both records when we take the two MACADE actions.

b. DE payments combined

If a dually entitled beneficiary wants different tax rates withheld from each record and we are currently combining both payments on one record, separate the existing combined DE payments via MACADE.

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Have the beneficiary complete two W-4V forms. One for each record indicating the respective withholding percentages.
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Route all W-4V forms to the controlling PC.
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Instruct the PC to separate the payments due to VTW via MACADE.
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The PC will take the two MACADE actions (VTAX REQ data must be on both records).

For DE awards when the beneficiary or his or her representative payee want different withholding rates on each record, the same rules apply as above, except that the MCS application may replace the W-4V forms.

c. Decombining DE payments for non-VTW reasons when the beneficiary also has VTW

When splitting DE payments for a non-VTW reason, and the beneficiary has VTW, tax resulting payments based on the existing VTW request via MACADE. Post the VTAX REQ data from the previous payment record the new payment record.

F. References

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SM 00510.145 MBR Data Lines
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SM 00545.000 PHUS Data Fields
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SM 00630.160 PHUS Events
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SM 03045.700 VTW Process
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MSOM T2PE 003.020 PEVW Screen
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MSOM MCSEC 001.028 DVTW Screen
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MSOM MCS 009.012 VTWH Screen 1
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TC 37005.000 Voluntary Tax Withholding

Social Security

Program Operations Manual System (POMS)

GN 02410.017 Requesting Voluntary Tax Withholding (VTW)