HomeNewsArticle Display

DOD educates military service members, civilian employees on Social Security Payroll Tax Deferral

WASHINGTON (AFNS) -- The Department of Defense is taking steps to notify and educate service members and civilian employees of changes to their payroll tax withholding starting in September 2020. In order to provide relief during the COVID-19 pandemic, a Presidential Memorandum was issued on August 8, 2020, followed by Internal Revenue Service guidance issued on August 28, 2020, to temporarily defer the withholding of Social Security taxes for certain individuals beginning September 1, 2020 through December 31, 2020.

For Service Members

Service members whose monthly rate of basic pay is less than $8,666.66 in any given month will have their 6.2% Old Age, Survivors, and Disability Insurance (OASDI) tax, commonly known as Social Security tax, deferred until December 31, 2020. This means, service members will see a temporary increase in their net take home pay. However, this increase in net take home pay is temporary, and under current IRS guidance, repayment of all deferred OASDI taxes will occur from January 1, 2021 through April 30, 2021, in addition to Social Security taxes which are normally withheld from a service member’s monthly pay. For example, a service member whose monthly basic pay is $3,306.30, could expect to see an increase of $204.99 in their monthly net take home pay from September through December 2020. Under current IRS guidance, beginning in January 2021, and continuing through April 2021, the $204.99 deferred tax amount will be withheld from the service member’s pay, in addition to his or her 6.2% OASDI taxes that are normally withheld each month.

Due to differences in pay systems, application of the Social Security (OASDI) tax deferral process will be different for most members of the National Guard and Reserves in the Army, Air Force, or Navy, than for active component members.

For these individuals, if they are eligible for the Social Security tax deferral, their initial net pay will have the OASDI taxes withheld. Two to three business days later a separate pay transaction will be processed to refund the Social Security taxes that were withheld from the initial pay. This will also result in an additional Leave and Earnings Statement being provided members in MyPay with an entry labeled “FICA Refund” reflecting the refunded Social Security tax amount.

The Department is providing information to service members so that they know why their take-home pay will increase during the last four months of 2020 and so that they can plan ahead the withholding of the deferred taxes during the first four months of 2021.

Service members and families can contact Financial Readiness staff at their installation Military and Family Support Center, or Military OneSource at 1-800-342-9647, if they need assistance in reviewing their Leave and Earnings Statements (LES) or have questions in planning for changes to their net take home pay.

For more information, service members may view the Defense Finance and Accounting Service page, https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site. For more information on financial readiness, visit www.finred.usalearning.gov or www.milspousemoneymission.org.

For Civilian Employees

Effective for pay period ending September 12, 2020, DoD will temporarily defer withholding of employees’ 6.2% Old Age, Survivors, and Disability Insurance (OASDI), commonly known as Social Security tax, if their wages, that are subject to OASDI, are less than $4,000 in any given pay period. Employees can use the “Taxable Wages” on the LES as a good reference for whether they will have OASDI tax deferred.

For Non-Appropriated Fund (NAF) civilian employees, the deferral is effective for the pay period ending September 9, 2020, or September 16, 2020 depending on their respective pay cycles.

Civilians whose wages, subject to OASDI, are less than $4,000 in any given pay period, will have their 6.2% OASDI tax deferred until December 31, 2020. These civilian employees will see a temporary increase in their net take home pay during the 2020 pay periods that their OASDI tax is deferred.

However, this increase in net take home pay is temporary, and under current IRS guidance, withholding of all deferred OASDI taxes will occur from January 1, 2021 through April 30, 2021, in addition to the 6.2% OASDI taxes that are normally withheld each pay period the civilian earns qualified wages.

For more information, civilian employees may view the Defense Finance and Accounting Service page, https://www.dfas.mil/taxes/Social-Security-Deferral/ and a list of Frequently Asked Questions, here. As more information is determined, updates will be posted on the site. For civilian employees with concerns regarding withholding of the deferred OASDI tax, please consult with an Employee Assistance Program financial counselor or a private financial advisor.

 

 

 

Engage

Twitter
Have you identified an #Airman who you believe is thinking about suicide? Use the Ask, Care, Escort Principles as… https://t.co/gWsxvJW9E8
Twitter
"Your best, today, is enough." - CMSgt Mary Polanco, AF Resilience Directorate senior enlisted advisor. #vASC2020https://t.co/8Bp4RCx4vc
Twitter
.@SecAFOfficial announced a new weapon system designator - the eSeries. #vASC2020 https://t.co/1uavZSZVeq
Twitter
RT @DoDCTO: The @DeptofDefense Strategic Capabilities Office Hypervelocity Gun Weapon System shot down a cruise missile target during a Sep…
Twitter
CMSAF #14 Gerald R. Murray & CMSgt Brian P. Jruzelnick, @AirMobilityCmd command chief, discuss how to lead during a… https://t.co/kcDunDdkrK
Twitter
Department of the Air Force spouse leaders discussed the new ops normal for families. They also highlighted the dif… https://t.co/h5acINQj38
Twitter
RT @WILLROP3R: Leaping from the automotive industry to Next Generation Air Dominance, digital engineering creates digital magic for our mil…
Twitter
RT @cmsaf_official: Big thanks to Team 19, Max Impact for the dinner performance, ours gracious hosts from AFA, and ALL the Airmen behind t…
Twitter
RT @GenCQBrownJr: “A reach-for-the-stars mindset is critical not because it produces history makers, but because it drives airmen to become…
Twitter
The Dept. of the Air Force is investing in groundbreaking capabilities. #vASC2020 #AimHigh @SecAFOfficial https://t.co/DFCrftck9W
Twitter
Digital engineering is the future of the Air Force #vASC2020 #InnovativeAF #AimHigh @SecAFOfficial https://t.co/uf5LiV3q85
Twitter
"Cooperating with allies and partners is the best way to help others attain and retain their freedom." -… https://t.co/gkyMGjj62i
Twitter
RT @AirNatlGuard: .@144thFW medical strike team members responded in record time to provide first aid support for more than 200 #CreekFire
Twitter
The first Air Force aircraft designed using the digital approach, the eT-7A Red Hawk, embraced model-based engineer… https://t.co/oD9bQ604Jo
Twitter
RT @SecAFOfficial: In addition to the content available from the @AirForceAssoc #vASC2020 events, the @PolarInstitute is hosting a discussi…
Twitter
.@SecAFOfficial recognizes the past and looks forward to the future during her address at the @AirForceAssoc’s Air,… https://t.co/TNi7VrDrNV
Twitter
“To inspire companies to embrace the possibilities presented by digital engineering, today the Department of the Ai… https://t.co/g9f9SrNUVG
Twitter
RT @SecAFOfficial: More information on the event and the lineup of speakers: https://t.co/Wdlkk8Rrcg
Facebook
The newest Air Force Podcast recently dropped. Listen to a small snippet of CMSAF Kaleth O. Wright talk with Staff Sgt. New about resiliency. Listen to the entire podcast on Youtube: https://go.usa.gov/xpnAD or Subscribe to The Air Force Podcast on iTunes: https://podcasts.apple.com/podcast/the-air-force-podcast/id1264107694?mt=2
Facebook
Our mantra, "Always ready!" It's the spirit we fly by! #B2Tuesday
Facebook
Need some motivation to get your week started off right? Listen as CMSAF Kaleth O. Wright weighs in...
Facebook
The U.S. Air Force Academy gives its cadets some unique opportunities. Ride along one of this opportunities.
Facebook
A United States Air Force KC-135 Stratotanker refuels an F-22 Raptor over northern Iraq, Nov. 6, 2019. U.S. Central Command operations deter adversaries and demonstrate support for allies and partners in the region. (Video by Staff Sgt. Daniel Snider)
Facebook
Although the Silver Star is the third-highest military medal, it's not given often. Today, TSgt Cody Smith was the 49th Special Tactics Airman to receive this medal since Sept. 11th, 2001. Read more of TSgt Smith's amazing story: https://www.airforcespecialtactics.af.mil/News/Article-Display/Article/2024815/special-tactics-airman-battled-through-injuries-awarded-silver-star/fbclid/IwAR2LZWwx1VHdTnQe39rIEBOuJS_0JvMQBBGt7I-E6zsxxn-Lx9387yu43Bc/ Cannon Air Force Base Air Force Special Operations Command United States Special Operations Command (USSOCOM) U.S. Department of Defense (DoD)
Facebook
Tune in as our Air Force musicians along with other military musicians are awarded the National Medal of Arts.
Facebook
Like Us
Twitter
1,277,599
Follow Us