In order to provide relief during the COVID-19 pandemic, Social Security tax withholdings were deferred for some workers. This change is effective through the end of the 2020 calendar year.
Effective for the September mid-month pay, withholding of the 6.2% Social Security tax will be deferred 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, your social security tax withholding will not be affected by the temporary deferral. Military members can use their August or prior LES as a good reference for their typical Social Security tax amount which can be found in the deduction section of the LES. The Social Security tax is generally calculated as 6.2% of basic pay for military members.
Effective pay period ending September 12, 2020, DFAS will temporarily defer the 6.2% OASDI tax withholding if wages, 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.
The OASDI deduction is found on your LES under the deductions tab/section.
Military members and civilian employees are not eligible to opt-out of the deferral if their Social Security wages fall within the stated limits. The deferral will happen automatically.
Per IRS guidance, collection of the deferred taxes will be taken from wages between January 1 and April 30, 2021 for both military members and civilian employees. Additional information on the collection process will be provided in the future.
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