Fiscal cliff legislation affects military, civilian paychecks

News > Fiscal cliff legislation affects military, civilian paychecks

Fiscal cliff legislation affects military, civilian paychecks

Posted 1/4/2013 Updated 5/16/2013

Email story Print story

American Forces Press Service

1/4/2013 - WASHINGTON (AFNS) -- The legislation President Barack Obama signed Jan. 2 postponed the fiscal cliff and means changes to military and civilian paychecks, Defense Finance and Accounting Service officials said today.

The legislation increases Social Security withholding taxes to 6.2 percent. For the past two years during the "tax holiday" the rate was 4.2 percent.

The increase in Social Security withholding taxes affects both military and civilian paychecks, officials said.

For civilian employees, officials said, this will mean a 2 percent reduction in net pay.

For military personnel, changes to net pay are affected by a variety of additional factors such as increases in basic allowances for housing, subsistence, longevity basic pay raises and promotions. Service members could see an increase in net pay, no change or a decrease, military personnel and readiness officials said.

For military members, Social Security withholding is located on their leave and earnings statement in the blocks marked "FICA taxes" -- for Federal Insurance Contributions Act.

Defense Department civilians will see the change on their leave and earnings statement under "OASDI" -- for old age, survivors, and disability insurance.

Reserve component members will be the first to see potential changes in their net pay as a result of the law, DFAS officials said. Changes will be reflected in their January paychecks.

Active-duty military personnel will see pay adjustments in their January mid-month paycheck and will be reflected on the January leave and earnings statement.

DOD civilians will see social security withholding changes reflected in paychecks based on the pay period ending Dec. 29, 2012, for pay dates beginning in January.

DFAS stresses that all personnel should review pay statements carefully.

Comments

1/11/2013 8:25:40 AM ET
I'm a single SrA on a humanitarian for my grandmother and I'm housing her my sister and her kid. I don't 'qualify' to receive dependant pay for any of them though no one else has income flowing into bills. Not living alone anymore I was forced into getting a larger place and with more people the bills are more. Honestly I'll be pushing it until anyone in a political field gets their crap together. Also I saw a post saying congress hasn't gotten a pay raise since 09. I'm pretty sure that it was meant to be the VP. I heard talk that the great Mr. President was pushing to increase Biden's pay to more than what is it these days 200K a year for the remainder of his life What's next Adding severance pay for his kids for their rest of their life afterwards It's not about what they are doing but where it's going.

x0, idgas

1/11/2013 2:40:36 AM ET
There are some points well made and opinions well put here so far.My question to each and every one of you that posts here is thisGiven that our elected representatives...in all their evident wisdom and powers of divinity ahem...could only manage to come up with a deal that has absolutely NO significant cuts in spending to go along with the expected raise in taxes....Why haven't we fired them all This is obviously not the problem of a particular party race gender etc....it is a problem of accountability and responsibilty. Accountability for their actions or lack thereof and responsibility to the American people of this nation to do their very best in regard to stewardship and fiscal solvency. What are we the people going to do about it Saying that we are simply going to vote them out of office isn't good enough...history shows us that fair and honest elections often are not latest one included. We as a nation need to get our pointed little heads together and co

John Santiago, Youngstown Ohio

1/10/2013 11:06:35 AM ET
what gov needs to do is simple stop giving money away to other countries cut social entitlements such as welfare section 8 etc insteasd of picking on citizens of working class

anonymous, jersey

1/10/2013 4:55:38 AM ET
I am an active duty single parent living on base. I don't think they should take away from us when they give to those who don't work at all or aren't even legal citizens of the US. Our priorities are messed up and it'll take a strong person to make a differencechange. I live within my means I don't over spend or have the most expensive material things. I didn't join the military for money but having stability is nice. If what you make doesn't pay your bills you are doing something wrong and should contact military one source for assistance on creating and maintaing a budget. I like pay raises just like the next person and think those people in office shouldn't get paid as much as they do but that is not going to change any time soon so we need to focus on ways to help with lowering the debt. The AF has the IDEA program think of something that will help save the military money and it'll be a start. Those not willing to HELP the change need not complain since they are only adding t

Kat, Ramstein Germany

1/9/2013 4:16:05 PM ET
I like how about a week ago the Secretary of Defense sent out a memo reagarding the fiscal cliff. It outlined in earnest how the Military Paycheck will not be affected. Well our BASE pay wasn't affected. But now this BAH and BAS are where the most money is made Outrageous. Sounds like political loopshole Bull to me.

J. Dunlap, Lackland

1/9/2013 2:36:50 PM ET
I think that we need to stop being selfish and pay a little more into Social Security. We don't get taxed enough and these refunds are a joke. Keep the money and use it for good like SS Medicaid Medicare welfare and other programs that help a fellow man in need. Don't be so upset to give the government a little more of your cabbage. We trust the president with our country but not our cash Wake up people and stop crying over your taxes. There are people out there that need them

TSgt Jeff M., Hurlburt Field AFB

1/9/2013 2:34:04 PM ET
Willie, where do you get the 35 peercent pay raise for congress? They haven't taken a pay raise since 2009. Personally I dont think they deserve a paycheck for the fiasco they have created and continuing to create. But they haven't taken a raise for some time now.

MSgt Ret, scott

1/9/2013 2:11:19 PM ET
Wow some people are compltely cluesless. 2 percent may not seem like much but when it affects a dual income house losing 200 a month it becomes a lot. Our generation and the next will never see this money instead we as a country are just going further into debt. We live within our means but why are we having to take a bigger cut when the cost of living is steadily going up and no sight of a pay raise in the near or far future. Very frustrated about what our great leaders have done to our nation.

BB, Missouri

1/9/2013 8:14:43 AM ET
You can live within means or you can expand your means. If you do the latter you won't stress about little things and this SS withholding tax increase really is of little consequence. Compare it to money you waste on dirty habits and material things that tie you down to the proverbial treadmill the grind of working to the bone for a small piece of carrot at the end of the stick. Don't save--invest.

Retiring early, Chucktown

1/9/2013 12:34:24 AM ET
Does no one actually read the article This was a TEMPORARY reduction Our pay isn't getting cut the rate is going back to NORMAL. As in this was a TEMPORARY measure NOT permanentAs others have stated if you can't afford to live on what we get paid you need a better budget. There's plenty of help available if you're unable to afford food for your kids.

SSgt on Guam, Andersen AFB

1/8/2013 4:30:41 PM ET
It's not about living within your means. It's about paying into something we won't ever get back. Instead it's going to the generation that got us in this mess in the first place.

kevin, charleston

1/8/2013 12:10:51 PM ET
My only gripe is...if I'm forced to pay into something it should be tangible to me at some point in my life. My generation will not see any sort of SS benefits-I'm 36. However currently there are MANY MANY peoplea/gencies sucking the SS budget DRY. I would really like to have the option to place my money somewhere else to ensure that I will have it to supplement retirement when MY TIME COMES

Want what I paid into it, Robins AFB

1/8/2013 11:07:52 AM ET
The change to OASDI was suppossed to be a a one year economic stimulus. It was extended a second year. It was never intenedd to be permanent nor does it have anything to do with the military population specifically.

BL, Whiteman AFB MO

1/8/2013 10:10:28 AM ET
This isn't just an active duty thing so please stop being so self centered. This is impacting everyone who works and pays taxes.

J, East Coast

1/8/2013 9:57:09 AM ET
There would be enough money to give a really good pay raise to the military if congress would forgo their 35 percent pay raise each year. They pocket enough cash from the Fortune 500 CEOs for side deals.

Willie Jones Jr., Scott AFB IL

1/8/2013 9:17:38 AM ET
Truthfully most of us will have no financial hardship with this pay cut. I take issue with why it's necessary. Someone posted earlier that none of this extra money is going to reduce the national debt. Where is this money going Does the government need this money so those on welfare can go to the strip clubs and casinos Maybe they need it to provide benefits to those who have no business in the US. I think there are more worthwhile sources to take from than our paychecks.

Mark, Lajes Field

1/8/2013 6:43:23 AM ET
We'll take this paycut like we do every other one. Any time we get a pay increase less than the inflation rate we're losing purchasing power anyway. This time it is just a little more obvious since Uncle Sam is sticking his hand in our pockets instead of the market.To those getting paid enough please send your extras to me. To those who would give their eyeteeth to have what I have I say enlist but please don't presume to take away my right to share my thoughts in a civil forum. The only other thing I know is war.

Crusty SNCO, Exit Lane

1/8/2013 4:34:55 AM ET
Live within your means...I am an E-5 with 1 one child single parent and I am OKAY. In fact I am re-enlisting BECAUSE of the financial stability. Stop overspending and you will be just fine.

Anonymous, Aviano

1/7/2013 7:55:27 PM ET
Live within your means. If you cant feed your family then something is wrong with your financial skills. My mom is able to feed 4 kids and herself with a 35k salary it used to be 5 but im no longer there. She has a house payment and a car payment on top of that. She also pays Hundereds in dancing supplies for one of my sisters who travels and competes. We as military get a seperate amount for Food and Housing. So you dont even have to worry about a housing payment coming out of your base pay plus the extra for food. Oh yea and she lives in California where cost of living is pricy.

Justin, Misawa

1/7/2013 3:43:17 PM ET
Two points here.A .3 percent cut is still a cut. It isn't going to make me starve but that isn't the point. I pay scrupulous attention to what little money I do have which is why it matters so much to me.I pinch pennies invest have 2 used cars and live on a monthly budget that I monitor closely.Those saying it's not big deal are wrong and it shows how little they really know about economics and how little attention they really pay to their money in general. That's why we're in this mess. We are not paying attention. As long as NFL refs don't strike our world is a-ok. Where the debt came from is somewhat water under the bridge now. But in addition to that the leadership has said there will be no backing down on having the US debt ceiling raised even higher so we can go spend more. Among other things this causes the Federal Reserve to engage in its third round of quantitive easing. Thats a fancy way of saying that the US prints worthless money out

Hikmat Hanna, Fairchild AFB

1/7/2013 3:42:03 PM ET
I don't mind not getting a pay raise or even having to pay a little more. What's frustrating is NONE of that is going to pay down the national debt. It's going to those who don't earn it but feel they are entitled to it. We're paying more but still growing the debt. This is not a sustainable economic strategy.

Frustrated, DC

1/7/2013 12:04:04 PM ET
i would love for someone to suggest congress to take a pay cut. watch them flip out...it's ok for them to mess with other people's pay checks but they wont take away from their own rediculous checks...seems fair

John Smith, My TARDIS

1/7/2013 11:18:13 AM ET
I agree that Active Duty should be tax free but I am also a firm believer in living within your means. Everyone has known for a very long time the 2 percent increase to the Social Security payroll tax was coming back. The military is getting a 1.7 percent raise which in reality equals a .3 percent loss in income. If you cannot survive a tiny .3 percent deduction in pay then you are living way outside of your means. This is no different than when the government threatens to shut down and not pay the military until they get a new budget. Every time this comes up everyone starts crying foul. Get ready for it to get worse. Plan now. Dont buy a pizza this month and put that money aside for the rainy days that are going to come up. Do you really need the brand new 4 wheel drive truck along with its 600 plus a month payment? Time for everyone to get real.

Happy to Serve, WPAFB

1/7/2013 11:10:57 AM ET
Most of these comments are pretty self absorbed for military members who pledge service before self. Think of the greater good. Sacrifice comes with the territory and we have to get back on track. Stop throwing your pity party focus on the task at hand and move forward. There are are a lot of folks in the private sector who would give their eye teeth to have what you have.

Bill, Fort Worth

1/7/2013 10:41:26 AM ET
You guys dont understand its not targeted to the military alone. It is increasing overall for everybody regardless of service. We get paid enough in the military already and if you can't pay for your child's food, you need a budget. Instead of complaining why don't you move to Europe where some countries have 35 percent income tax and another 8 percent on sales.

DVF, Travis AFB

1/7/2013 9:49:50 AM ET
Cuts are really effecting the military morale and doing more with less has become the norm in the last 10 years of my military career. Taking away our pay raises and incentives leaves us with little hope and trust. God Bless are Military Brothers and Sisters Who Serve Willingly and Unselfishly. You would think are Congress and are Nation would take care of all of us without demise. Are military is losing valuable members daily to these cuts and stressful life style. It is not only effecting the service members but our familys as well. Open your EYES AMERICA Show your Military and DoD members some compassion and respect that we deserve.

Billyjoe W, SC

1/7/2013 9:01:39 AM ET
This is just the tip of the iceburg. When 2014 hits you will miss a lot more than 2 percent.

Gary Harklerode, Bossier City LA

1/7/2013 7:19:35 AM ET
Would be nice if legislators would realize that the military shouldn't have to pay towards their own paycheck. Members on AD should be exempt from Federal Taxes. Social Security I can understand but Medicare and Medicaid we should not be charged for.

TSgt Michael Combs, Spangdahlem AB

1/7/2013 5:54:34 AM ET
Did military stop paying into social security Last time I looked military still did which means their pay will be reduced by that 2 percent increase in withholding also. The pay raise was only 1.7 percent the last news release I saw - did I miss the math where 2 V is now less than 1.7 V

J B Jones, Texas

1/4/2013 2:35:23 PM ET
As much as i love this contry congress needs to wake the heck up and realize that they are messing with people's financial stabillity i love this country but patriotism doesnt pay my children's food.

John Smith, My TARDIS

Add a comment

Inside AF.mil

GeneralImagesVideo

View All RSS

Subscribe AF.MIL

More Headlines

Davis-Monthan Airmen work to end veteran homelessness by 2015

Jennies to jets to stealth: Bomb wing turns 90

Concentration camp survivor to fighter pilot: 'Freedom a beautiful thing'  5

Wounded warriors adapt, overcome at Andrews sports camp

Pilots, combat systems officers may be eligible for retention incentives   2

Alert Reaper Airmen find IED  1

Luke AFB F-16 crashes, pilots safely eject  4

AF drops 50,000 plus gallons of retardant on Colorado fires

352nd SOG welcomes Osprey to fleet

SecDef: DOD welcomes Supreme Court decision  37

Weather warns warriors, saves services silver  1

Squadron's lone female gunner aims high  4

Flight engineer reaches combat sortie milestone  4

Training helps deployed Airman save lives  2

Commentary

Our commitment, our community

'Lucky' people take personal responsibility for their own success 16