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.


 
 

 
U.S. Air Force photo/Senior Airman Russell S. McMillan

Commander shows off Team March at Capitol Hill

U.S. Air Force photo/Senior Airman Russell S. McMillan (From left to right) U.S. Rep. Mark Takano, who represents the 41st District of California, and Julia Steinberger, senior legislative assistant to Takano’s office, discus...
 
 
U.S. Air Force photo/Master Sgt. Megan Crusher

Yellow Ribbon program supports Airman inspired by family history

U.S. Air Force photo/Master Sgt. Megan Crusher Almira Pasic and her youngest son, Memsudin, participate in an activity during the Warrior Support Forum, at a Yellow Ribbon Reintegration Program, held in Chandler, Ariz., July 26...
 
 
Courtesy photo

Through the glass: Veteran remembers his past

Courtesy photo Retired Lt. Col. Bruce Sooy receives a demonstration flight at Nut Tree Airport, Calif., July 2015. It had been 56 years since he had last flown an aircraft. (This feature is part of the “Through Airmen’s Eye...
 

 
Brigade3

News from the 304th Sustainment Brigade’s Facebook page

Army Reserve Pvt. 2nd Class Kiet Duong, a culinary specialist with the 387th, sifts flour through a sieve during the competition. Duong, a Garden Grove, Calif., native, used the flour in the baked wheat rolls and Boston cream c...
 
 
Courtesy photo of Marine Maj. Bridget Guerrero (ret.)

Marine vet honors fallen female troops with 160-mile run

Courtesy photo of Marine Maj. Bridget Guerrero (ret.) Marine Maj. Bridget Guerrero (ret.) ran 160 miles around the Puget Sound in Washington from July 23-26, 2015. Each mile represented a female service member who lost her life...
 
 
150725-F-RK887-023

Swarz assumes command of 452nd Security Forces Squadron

The 452nd Security Forces Squadron held an Assumption of Command ceremony at the Cultural Resource Center here on Saturday, July 25, 2015. During the ceremony Lt. Col. Arthur J. Rodi, deputy commander, 452nd Mission Support Gro...
 




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=""> <s> <strike> <strong>