National Postal Mail Handlers Union - Unity · Democracy · Strength - Division of LIUNA - AFL-CIO

National Postal Mail Handlers Union A Division of LIUNA (AFL-CIO)

Media Center / Mail Handler Update

January 2026

TAX ON OVERTIME?

The Reconciliation Bill that passed Congress was signed into law on July 4, 2025, as Pub-lic Law 119-21 contained provisions for “No ax on Tips”, “No Tax on Overtime”, “No Tax on Car Loan Interest”, and several other provisions.

The “No Tax on Overtime” is only a catchphrase that interests most Mail Handlers. It sounds great! However, it is not as great as it was advertised. It sounded like there would be no federal income tax on all paid overtime hours. The truth is that the new federal income tax on overtime is restricted and limited. It does not make all overtime tax-free!

The so-called Big Beautiful Bill is not as big and beautiful as advertised.

UNION DUES CODES

Many times, members think they are paying Mail Handlers union dues, but do not realize that HRSSC entered the wrong Union code. They see a deduction for “Union Dues” but is it the correct code? The proper NPMHU Union Code should be “Union Dues: H”.

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