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/Megan Crusher

‘The Spirit of Ronald Reagan’ gets nose art

U.S. Air Force photo/Megan Crusher Col. Russell Muncy, commander, 452nd Air Mobility Wing, March Air Reserve Base, California, and U.S. Congressman Ken Calvert, California’s 42nd district, unveil C-17 original nose art, creat...
 
 
AFN courtesy photo

Hollywood’s Oscar shout outs for U.S. military

AFN courtesy photo From left, Eric Gabriel, Army Maj. Rosy Poulos, Patrice “Rock” Grant, Air Force Staff Sgt. Rob Harden and Fabian Montgomery, American Forces Network employees, work the red carpet at the Oscars to provide...
 
 

452 AMW QUARTERLY AWARD WINNERS

2nd Lt. Jim Lambert, 452nd Aeromedical Evacuation Squadron Company Grade Officer of the Quarter Senior Airman Anahi Ledezma, 452nd Communications Squadron Airman of the Quarter Staff Sgt. Paul Bugar, 729th Airlift Squadron NCO of the Quarter Master Sgt. John R. Hershey Jr., 752nd Aircraft Maintenance Squadron SNCO of the Quarter
 

 
U.S. Air Force photo / Megan Crusher

March Field FES hosts Riverside County Chief’s Association meeting

U.S. Air Force photo / Megan Crusher Eliot M. Cooper (center), assistant fire chief and C. Christianson (left), assistant chief of training, give Patrick Reitz, fire chief, Idyllwild Fire Protection District, a tour of the Marc...
 
 
163rd Security Forces Squadron courtesy photo

March Airmen respond to helicopter crash

163rd Security Forces Squadron courtesy photo A UH-60 Blackhawk helicopter rests on its side at Ramona Airport, Ramona, California, Jan. 20, 2015, after crashing. Seven Airmen from the 163rd Reconnaissance Wing’s Security For...
 
 
Figure-2

Dietary supplements: How safe are they really?

Walk into a health food store today and you can be overwhelmed by shelves piled with dietary supplements. What’s going on? For the past ten years the popularity of dietary supplements has increased steadily. Supplements are a...
 




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