R 221650Z SEP 20
MSGID/GENADMIN/CMC WASHINGTON DC MRA//
SUBJ/NOTICE OF TEMPORARY 2020 SOCIAL SECURITY TAX DEFERRAL//
NARR/REF A IS THE PRESIDENTIAL MEMORANDUM ISSUED TO DEFER WITHHOLDING PAYMENT OF SOCIAL SECURITY TAX. REF B IS INTERNAL REVENUE SERVICE NOTICE 2020-65.//
POC/A.N HARGIS/CIV/UNIT: CMC(MPO)/EMAIL:
POC/A. KRAWCZEL/MAJ/UNIT: CMC(MPO)/EMAIL:
GENTEXT/REMARKS/1. Purpose. To notify military personnel and civilian employees of changes to their payroll tax withholding starting in September 2020.
2. Per the references, during the months of September through December, certain qualifying populations of military personnel and civilian employees will see a temporary decrease in social security taxes (6.2 percent of basic pay) withheld, resulting in a temporary increase in their net take home pay. However, this increase in net take home pay is temporary, and under current guidance, repayment of all deferred taxes will occur from 1 January through 30 April 2021, in addition to social security taxes which are normally withheld from an individual’s pay.
3. The deferral applies to all federal civilian employees who earn less than $104,000 annually or $4,000 per pay period and applies to military personnel pay grade O5 under 16 years of service and below with the exception of CWO5 24 years and over and the Sergeant Major of the Marine Corps.
4. Qualifying personnel should plan ahead for the withholding of the deferred taxes during the repayment period. Additional guidance will be provided concerning the repayment of deferred taxes for individuals who leave service, retire, enter a drill status or non-paid status before or during the repayment period.
5. For more information or questions regarding the tax deferral, refer to https://www.dfas.mil/taxes/social-security-deferral/
6. This MARADMIN is applicable to the Total Marine Corps Force.
7. Release authorized by LtGen David A. Ottignon, Deputy Commandant of for Manpower and Reserve Affairs.