Military and civilian Defense Department employees will see tax increases this year, under the 2013 defense spending bill and legislation aimed at averting the so-called “fiscal cliff” that would have slashed federal spending across the board. Social Security withholding taxes are rising to 6.2 percent, up from 4.2 percent. For civilians, the change amounts to a 2-percent drop in pay. The effect of the change is harder to pinpoint for service members. Some will see increases, some will break even, and others will see a decrease. Service members should be able to see any changes in their mid-January leave and earnings statements.
