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There is a schedule that payroll abides by and they calculate the withholdings by how many exemptions you declare based upon your position as a taxpayer - number of children, married etc.
It doesn't matter what the payroll schedule says because it is not made a part of the W-4. Employees/Taxpayers do not agree to anything withheld from their pay unless they stipulate the $$ on the W-4.
You agree that the W4 withholdings are not a matter of cashing part of your paycheck.
W-4 withholdings are not a matter of cashing part of your paycheck because they were never made a part of it.
If you use the stamp cashing for non-negotiable Federal Reserve Notes then there is no taxable event.
The money that you did not receive as a part of your paycheck is a taxable event. You signed a W-4, digits were subtracted from your pay. The IRS is going to assume you had a taxable event because digits were subtracted--you authorized those digits substracted from the W-4.
At the end of the tax year, if you have no taxable events to declare private credit with the Federal Reserve, then the Treasury is obligated to release the withholdings held in anticipation of taxable events - Refund.
At the end of the year you will have a taxable event to declare with the digits that were withheld from your pay and allegedly sent to the Treasury.
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