The temporary deferral of Social Security tax withholdings for service members and civilian Defense Department employees has ended. Resumption of the 6.2-percent withholdings resumed as of Jan. 1, and is scheduled to continue through the end of the year. As of the beginning of the calendar year, myPay leave and earnings statements (LES) will show how much deferred 2020 Social Security tax has been collected, as well as the remaining balance.
The collection schedule varies, depending upon employment status.
* For active-duty service members, collection of the withholdings will occur in 24 installments from mid- and end-of-month pay periods.
* Reservists and National Guard members who perform intermittent duty during the year will not see the same amount collected from each pay period. Instead, the Defense Finance and Accounting Service (DFAS) will collect two percent of the available net during each weekly, mid-month and end-of-month paycheck. The withholdings will continue until any deferred taxes are paid in full.
* Civilian employees will see their deferred 2020 Social Security taxes recouped in 24 installments, between the pay periods that end January 16 and December 4 of this year.
Service members who separate or retire and civilian employees who retire before the entire amount of unpaid 2020 Social Security tax deducted from their final pay. If the amount exceeds that of the final paycheck, those who separate or retire would receive a debt letter with instructions on repayment.