A deposit labeled DFEC Treas 310 on your bank statement is a direct deposit from the U.S. Treasury on behalf of the Division of Federal Employees’ Compensation, the Department of Labor office that pays benefits under the Federal Employees’ Compensation Act (FECA). If you, a spouse, or a parent filed a work-injury or work-related death claim as a civilian federal employee, that deposit is tied to the claim.
What the Code Actually Says
The label is three pieces stitched together. “TREAS” is the U.S. Treasury Department, which processes nearly all federal payments to individuals. “310” is the standard banking code for an ACH credit, meaning a direct deposit rather than a mailed check. Other agencies use the same “Treas 310” format with their own prefix; IRS tax refunds, for example, arrive as “IRS TREAS 310” with a secondary code like “TAX REF.”1Taxpayer Advocate Service. TAS Tax Tip: Got a Direct Deposit from the IRS, But Not Sure What It Is For?
The “DFEC” prefix identifies the paying office: the Division of Federal Employees’ Compensation, inside the Department of Labor’s Office of Workers’ Compensation Programs (OWCP). DFEC administers FECA, the workers’ compensation system for civilian federal employees across all branches.2eCFR. 20 CFR Part 10 – Claims for Compensation Under the Federal Employees Compensation Act, as Amended Every deposit carrying this prefix traces to a FECA claim.
Which FECA Benefit You’re Being Paid
The bank statement won’t tell you which benefit the money represents. The amount and the schedule usually will.
Wage-Loss Compensation
This is the most common DFEC deposit. When a job-related injury or illness keeps a federal employee from working, FECA replaces 66⅔% of regular pay, or 75% if the employee has at least one dependent.2eCFR. 20 CFR Part 10 – Claims for Compensation Under the Federal Employees Compensation Act, as Amended Long-term disability payments run on a 28-day cycle, not a monthly one, so the deposit date shifts through the year rather than landing on the same calendar day each month.3U.S. Department of Labor. Periodic Roll Payment Schedule
Two timing rules commonly confuse newer recipients. After a sudden (traumatic) injury, the first 45 calendar days of lost time are paid as continuation of pay through the employee’s own agency payroll, not by DFEC.4Office of the Law Revision Counsel. 5 USC 8118 – Continuation of Pay; Election to Use Annual or Sick Leave DFEC wage-loss deposits begin only after that period ends. There is also a 3-day waiting period at the start of temporary disability: no compensation is paid for the first three days unless the disability lasts more than 14 days or becomes permanent, in which case FECA pays retroactively.5Office of the Law Revision Counsel. 5 USC 8117 – Time of Accrual of Right
Long-term recipients get an annual cost-of-living adjustment every March 1, based on the December-to-December change in the Consumer Price Index.6Office of the Law Revision Counsel. 5 USC 8146a – Cost-of-Living Adjustment of Compensation A small bump in your regular deposit in early spring is usually the COLA.
Schedule Awards
A schedule award compensates for permanent loss or loss of use of a specific body part or function, such as an arm, leg, hand, foot, eye, or hearing. Unlike open-ended wage-loss compensation, a schedule award pays out for a fixed number of weeks tied to the severity of the impairment, at 66⅔% of monthly pay.7Office of the Law Revision Counsel. 5 USC 8107 – Compensation Schedule On the bank statement, these deposits ride the same 28-day cycle and look identical to wage-loss payments.
Survivor Benefits
When a federal employee dies from a work-related injury or illness, DFEC pays ongoing compensation to eligible family members. A surviving spouse with no eligible children receives 50% of the deceased employee’s pay. A surviving spouse with children receives 45%, plus 15% for each child, capped at a combined 75%. If only children survive, the first child receives 40% and each additional child 15%, again capped at 75%.8U.S. Department of Labor. Filing for Death Benefits
Medical Reimbursements
DFEC also reimburses approved medical expenses tied to an accepted claim, including treatment costs and authorized travel.2eCFR. 20 CFR Part 10 – Claims for Compensation Under the Federal Employees Compensation Act, as Amended A smaller, irregular deposit that doesn’t match your periodic compensation amount is often a reimbursement.
Is a DFEC Treas 310 Payment Taxable?
In almost every case, no. FECA disability compensation and FECA survivor benefits are exempt from federal income tax, and OWCP does not issue a 1099 for them.9U.S. Department of Labor. Claimant Tax Information You don’t report these payments on your return.
One exception trips people up: continuation of pay for a traumatic injury is taxable salary, reported on line 1a of Form 1040, and sick leave used while a claim is pending is also taxable.10Internal Revenue Service. Publication 525, Taxable and Nontaxable Income COP usually comes through your agency payroll rather than as a DFEC Treas 310 deposit, so the taxable piece and the non-taxable DFEC deposits generally arrive from different sources.
How FECA Interacts with FERS Disability and Social Security
You generally cannot collect both a FERS disability retirement annuity from OPM and FECA wage-loss compensation for the same period. Federal law treats that as prohibited dual compensation, and most injured employees must choose one. You can, however, collect a FERS annuity together with a FECA schedule award (which pays for permanent impairment rather than lost wages) or with FECA survivor benefits paid on another person’s death.11Office of Personnel Management. Information About Disability Retirement (FERS) Most employees pick FECA because the compensation rate, up to 75%, is usually higher than FERS disability retirement would pay.
Social Security Disability Insurance is different. You can receive both SSDI and FECA, but the combined total cannot exceed 80% of your average pre-disability earnings. If it does, Social Security reduces the SSDI benefit by the excess, and that offset continues until you reach full retirement age or your FECA benefits end.12Social Security Administration. How Workers’ Compensation and Other Disability Payments May Affect Your Benefits
If the Deposit Looks Wrong or Unexpected
Start by matching the date and amount to your FECA paperwork: your most recent letter from the Department of Labor on your case, your approved CA-7 for wage-loss claims, or your schedule award notification.13U.S. Department of Labor. Filing for Compensation Benefits
The fastest check is online through the Employees’ Compensation Operations & Management Portal at ecomp.dol.gov. Claimants can view case status, see individual compensation payments, and upload documents.14U.S. Department of Labor. Information for Claimants and Representatives For anything the portal doesn’t answer, call the DFEC Call Center at 1-844-493-1966 with your OWCP case number ready; a Social Security number alone won’t work.15Office of Workers’ Compensation Programs. How to Contact Us If no DFEC record explains the deposit, ask your bank to trace the ACH transaction back to the originating federal entity.
Act quickly if you suspect the amount is too high. Overpayments happen when a claim status changes, a payment goes out before a reduction takes effect, or compensation gets calculated on the wrong pay rate. OWCP sends a preliminary notice and lets you respond, then collects by deducting from future FECA checks or, if none are due, by offsetting your tax refund, your federal salary, or other federal payments, or by referring the debt for collection.16eCFR. 20 CFR 10.441 – How Are Overpayments Collected? A waiver is possible only if you were not at fault and either repayment would defeat the purpose of FECA by taking income you need for basic living expenses or would be against equity and good conscience because you relied on the payments to your detriment.17eCFR. 20 CFR Part 10 Subpart E – Overpayments Ignoring the notice only speeds up collection.