U.S.

January 11, 2013

Fiscal cliff legislation affects military, civilian paychecks

American Forces Press Service

WASHINGTON, D.C. — 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, Jan. 4.
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 Federal Insurance Contributions Act, or FICA blocks.

Defense Department civilians will see the change on their leave and earnings statement in the old age, survivors, and disability insurance, or OASDI, block.

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.

Department of Defense civilians will see social security withholding changes reflected in paychecks based on the pay period ending Dec. 29, 2012, for pay dates beginning in Jan. 2013.

Defense Finance and Accounting Service officials stress the importance of reviewing pay statements carefully.




All of this week's top headlines to your email every Friday.


 
 

 
Untitled-1

Preparation essential for those living in “Earthquake Country”

While we continually stress the fact we live in earthquake country, the last couple of weeks have certainly lent credence to that statement. Seismic activity in the California area to include Los Angeles, La Habra and Fortuna, ...
 
 
taxes-art

Tax season deadline looms, free filing available

On April 15, the regular tax season comes to an end. Unless you qualify for an automatic extension (deployed anytime from Jan. 1 – April 15, 2014), or you file for an extension, you need to have filed your return. Why not...
 
 

UPCOMING TICKETS AND TOURS EVENTS

Some restrictions apply. Times are approximate. APRIL Date: April 12 Event: Land Sailing Trip Cost: Free Description/ Restrictions: This is a Single Airmen Program. Open to all base personnel but Single Airmen have priority. For more info please call Outdoor Rec. at 951-655-2816. Date: April 26 Event: Carlsbad Flower Fields Blues Day/ Outlet Tour Cost:...
 

 

Military officials take aim at tobacco use

Military health officials have set an ambitious goal: to have all Department of Defense installations tobacco-free by the year 2020. That’s one part of a larger effort to cut tobacco use among service members and veterans, said Col. John Oh, Health Promotion chief at the Air Force Medical Support Agency. Tobacco has long been known...
 
 
DoD
MOMC_graphic

DOD salutes children during military child month

The Defense Department believes military children serve their country alongside their service member parents, DOD’s director of the office of family policy/children and youth said. When military children serve, they do so by ...
 
 

“Live our values, step up to stop sexual assault”

April is Sexual Assault Awareness Month (SAAM) and sexual assault is a crime that is not compatible with your military service. Each April, the Department of Defense (DOD) and other organizations across the nation observe SAAM. This annual event provides the opportunity to highlight the efforts that the DOD and Military Services are taking to combat...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin