Here are some more articles about the Social Security tax deferral:
Here’s a cheat sheet developed by Dr. Dustin Schuett* for the issue discussed in the article below:
Here’s a link to the Military Times article:
*Note: The views expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Department of the Navy, Department of Defense or the United States Government.
BLUF – If your monthly basic pay is less than $8,666.66 per month you are going to get extra money deposited in your accounts for the rest of the year, but they will take it back in early 2021.
Here’s the military relevant text from the DFAS page discussing this COVID related Presidential initiative:
In order to provide relief during the COVID-19 pandemic, a Presidential Memorandum was issued on August 8, 2020 and guidance followed by Internal Revenue Service on August 28, 2020, to temporarily defer Social Security (Old Age, Survivors, and Disability Insurance (OASDI) tax withholdings. This change is effective through the end of the 2020 calendar year.
Military Members – Effective for the September mid-month pay, DFAS will temporarily defer the withholding of your 6.2% Social Security tax if your monthly rate of basic pay is less than $8,666.66. If your 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. The Social Security tax is labeled as “FICA-SOC SECURITY” on the LES and is calculated as 6.2% of basic pay.
Military members 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 your 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.
If a military member or civilian employee separates or retires in 2020 before the Social Security tax can be collected in 2021, they are still responsible for the Social Security tax repayment. Additional information on the collection process will be provided in the future.
For questions on the temporary deferral of the 6.2% OASDI withholding:
- Visit the IRS page: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding.
Still have questions? See the FAQs for more information.
WASHINGTON (NNS) — The Navy has authorized Assignment Incentive Pay (AIP) for Sailors extended at certain commands due to COVID-19 transfer delays.
On June 12, the Navy announced the conditions-based, phased plan for Permanent Change of Station (PCS) moves. A vital part of the plan is prioritizing sea duty and critical shore billets, such as Recruit Division Commanders duty at Recruit Training Command in Great Lakes. As a result, Sailors at these types of duty may be involuntarily extended.
“Shipmates, I honor your continued dedication to the mission in these tough times,” said Vice Adm. John B. Nowell Jr., the Navy’s top uniformed personnel official. “We will only keep you in your current billet if it is absolutely necessary for mission readiness, however, if you are affected by these moves beyond our normal limits, we now have taken steps to compensate you for your time.”
Involuntary extensions beyond six months will only occur under the most unusual circumstances. The Navy’s standard rotation window allows for Sailors to be transferred up to six-months before their scheduled rotation date as well as to be held in place for an additional six months, if necessary.
According to two separate Department of the Navy memos, Recruit Division Commanders and Sailors on sea duty are eligible to be paid AIP at the rate of $500 per month for each month they are held at their current command beyond the six-month threshold. Sailors should work with their chain of command as well as their detailer to determine if this program will apply to them.
Assignment Incentive Pay is just one tool available to the Navy to keep key billets filled. Still in effect is NAVADMIN 132/20 released on May 5, which offers both high-year tenure waivers as well as Sea Duty Incentive pay to Sailors in specific skills willing to extend at sea or return to sea early. The deadline to apply for these programs is Sept. 30.
Volunteering to extend could net Sailors a lump-sum payment in return for their extension or curtailment, the amount can vary based on rating and paygrade. Those Sailors interested in volunteering for SDIP should contact their detailer. This includes those in SDIP-eligible skills currently scheduled to separate or retire who are willing to delay their departure by 6-12 months are eligible for SDIP as well.
Ordinarily, such requests require applying 14-16 months before their projected rotation date; however, this timeline may be waived on a case-by-case basis. The latest list of eligible ratings and paygrades, updated May 5, can be found at https://www.mnp.navy.mil/group/pay-and-benefits.
More information on the AIP program is available at https://www.mnp.navy.mil/group/assignment-leave-travel/resources-and-links. Those interested in the high-year tenure wavers and Sea Duty Incentive Pay can get details from NAVADMIN 132/20.
The latest DoD policies are at https://www.defense.gov/explore/spotlight/coronavirus.
For more news from Chief of Naval Personnel, visit www.navy.mil/local/cnp/.
Here’s a link to this article:
Here’s a link to this article:
Here’s a link to this on-line guide that covers Basic Pay, BAH, retirement, family support, VA loans, TRICARE, and educational benefits. It is a great resource if you have questions about how something works:
Here is the update posted on the BUMED Special Pays Website a few days ago:
16 January 2020: The NAVADMIN releasing the approved FY20 Medical Department Special & Incentive Pay Plan is expected to be signed and released in the coming weeks, Until that time, the following clarifications are provided:
- If an officer’s eligibility date for a special pay is on, or after, 1 October 2019, the request cannot be submitted until the FY20 Medical Department Special & Incentive Pay Plan is approved and released. The NAVADMIN is the authority from Chief, Navy Personnel authorizing Chief, BUMED to execute the special pays in FY20.
- Once the NAVADMIN is released, medical department officers will have 30 days from the date of release to submit a special pay request effective 1 October 2019, or the date the officer became eligible if after 1 October 2019.
- Requests for Retention Bonus effective 30 September 2019, or earlier, cannot be submitted until the NAVADMIN is released, as the guidance governing these requests is included in the FY20 Medical Department Special & Incentive Pay Plan.
GAO – DOD Should Collect and Use Key Information to Make Decisions about Incentives for Physicians and Dentists
Certainly an interesting report…
Here’s an article that compares the House and Senate versions of the NDAA 20. Here are the two bullets most readers would care about:
- A pay raise win. Summaries from leaders of both the House and Senate Armed Services Committees pledge that their final legislation will include a 3.1% military pay raise, which would align with the administration’s FY 2020 budget request and with MOAA efforts to sustain pay comparability with the private sector. While nothing’s settled until passage, this appears to be one of few issues that won’t be affected by ongoing debate – a key House member said as much at a recent news event.
- Halfway on health care? While House Armed Services Committee (HASC) members included language that would put a stop to a proposal to cut up to 18,000 medical billets, the Senate Armed Services Committee (SASC) has not. House committee members shared MOAA’s concerns about the potential consequences of cutting roughly 20 percent of the military’s medical force. They included language requiring DoD to study the issue further and report back to Congress.