Commander, Navy Reserve Forces warns military/civilians to save to repay SS tax deferral
From the message:
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"A Presidential Memorandum was issued recently to temporarily defer Social Security tax withholdings through the end of 2020. Plan ahead before spending the extra money in your paycheck. The deferred taxes will need to be paid back between Jan 1 and April 30, 2021.
More information can found about the deferral on the DFAS website:
https://www.dfas.mil/taxes/Social-Security-Deferral/
Military Members - Effective for the September mid-month pay, DFAS will temporarily defer the withholding of the 6.2% Social Security tax if the monthly rate of basic pay is less than $8,666.66. If the monthly rate of basic pay is at or above this threshold, the social security tax withholding will not be affected by the temporary deferral. Military members can use their August or prior LES as a reference for their typical Social Security tax amount. The Social Security tax is labeled as “FICA-SOC SECURITY” on the LES and is calculated as 6.2% of basic pay.
Civilian Employees – For the pay period ending September 12, 2020, DFAS will temporarily defer the 6.2% OASDI tax withholding if wages, subject to OASDI, are $4,000 or less in any given pay period. Employees can use the “Taxable Wages” on their LES as a good reference for whether they will have their OASDI tax deferred. The OASDI deduction is found on the LES under the deductions tab/section."
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