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.


 
 

 
square

‘Retired Air Force Reservist finds inspiration through loss’ addendum

Angela Alexander was a member of the 56th Aerial Port Squadron, March Air Reserve Base and on annual tour in Japan when she was notified that her family had been in a severe car crash. She was told her husband, Suri and two dau...
 
 

Alcohol: how much is too much?

Alcohol is a part of the American culture — civilian and military. Many of us drink with others to socialize and celebrate important events. Or we sometimes drink alone to relax and unwind from a hard day at work. But along with the good times and good feelings associated with alcohol, there are well-known health...
 
 
BC3---women-in-combatswuare

AF begins testing phase for women in combat roles

U.S. Marine Corps photo by Cpl. Marionne T. Mangrum Cpl. Daisy Romero (left) and Sgt. Jessica Dmoningo, assigned to a female engagement team (FET), speak with an Afghan man in his compound during a patrol in Marjah, Helmand pro...
 

 
U.S. Air Force photo/Senior Airman Ashley J. Thum

Ten ways to help kids conquer military life challenges

U.S. Air Force photo/Senior Airman Ashley J. Thum Capt. Adam Luber, a 334th Fighter Squadron pilot, and Jeremiah Seaberry, the 334th FS pilot for a day, watch F-15E Strike Eagles on the flightline during a 4th Fighter Wing Pilo...
 
 
BC4---wildfire

922nd Civil Engineer Flight, small unit, worldwide impact

U.S. Air Force photo/Capt. Jason Saberin Members of the Army’s Northwest Division Field Engineer Support Team join the 922nd Civil Engineer Flight’s Staff Augmentation Team (S-Team) at March Air Reserve Base, Calif., Feb. 2...
 
 

AF sexual assault prevention: moving in the right direction

“I was raised in a household where you take responsibility for your own actions and don’t blame others for your downfalls,” said Tech. Sgt. Kathleen Thorburn. “Instead of seeing a crime that had occurred, all I could see were my mistakes. Why did I go to that party? Why did I accept the drink? Why...
 




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