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.


 
 

 

National Days of Remembrance: Holocaust FAQ

What is Days of Remembrance? The U.S. Congress established Days of Remembrance as the nation’s annual commemoration of the Holocaust and created the United States Holocaust Memorial Museum as a permanent living memorial to the victims. This year, Holocaust Remembrance week is May 1 through May 8, 2011. The Museum designated “Justice and Accountability in...
 
 
U.S. Air Force photo/Megan Crusher

Navy Reserve celebrates its centennial

U.S. Air Force photo/Megan Crusher The Navy Operational Support Center, Moreno Valley celebrated the Navy Reserve’s 100th birthday with a ceremony held at their facility, Mar. 14, 2015. Festivities began with the posting of t...
 
 
DOD screen shot

Carter takes oath of office in White House ceremony

DOD screen shot Vice President Joe Biden swears in Ash Carter as the 25th defense secretary as Carter’s wife, Stephanie, looks on during a private ceremony at the White House, Feb. 17, 2015. WASHINGTON, Feb. 17, 2015 – With...
 

 

Happy birthday, George Washington!

(archives.gov) George Washington, copy of painting by Gilbert Stuart, 1931-1932, RG 148, Records of Commissions of the Legislative Branch, George Washington Bicentennial Commission. George Washington’s Birthday is celebrated as a federal holiday on the third Monday in February. It is one of eleven permanent holidays established by Congress. Federal holidays apply only to the federal...
 
 
(Official U.S. Air Force photo)

Knowing the facts: National American Indian Heritage Month

(Official U.S. Air Force photo) Maj. Gen. Clarence L. Tinker was the highest ranking officer of Native-American ancestry and the first general lost in action during World War II. November is National American Indian Heritage Mo...
 
 
U.S. Navy Photo/Senior Chief Mass Communication Specialist John Harrington

They took a brave path to the United States

U.S. Navy Photo/Senior Chief Mass Communication Specialist John Harrington Jimmy Truong (sitting) and Vien Do escaped from Vietnam and found their way to the U.S. before eventually landing Information Technology jobs at the AFN...
 




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