Tax Deferment Information

In order to provide relief during the COVID-19 pandemic, a Presidential Memorandum was issued on August 8, 2020 and guidance followed from Internal Revenue Service on August 28, 2020, to temporarily defer Social Security (Old Age, Survivors, and Disability Insurance (OASDI)) tax withholdings. This change is effective through the end of the 2020 calendar year.

“The benefit of this tax deferral is that members have more money in their paychecks to mitigate the negative financial effects of COVID.” Said Tech Sgt Skott Cameron, Financial Operations non-commissioned officer in charge. He further added, “Ideally members should put the extra money aside in their savings as a rainy day fund in case they need it.”

Military Members - Effective for the September mid-month pay, withholding of the 6.2% Social Security tax will be deferred if your monthly rate of basic pay is less than $8,666.66. If your monthly rate of basic pay is at or above this threshold, your social security tax withholding will not be affected by the temporary deferral. Military members can use their August or prior leave earning statment as a good reference for their typical Social Security tax amount which can be found in the deduction section of the LES. The Social Security tax is generally calculated as 6.2% of basic pay for military members.

Civilian Employees - Effective pay period ending September 12, 2020, DFAS will temporarily defer your 6.2% OASDI tax withholding if your wages, subject to OASDI are less than $4,000 in any given pay period. Employees can use the “Taxable Wages” on the LES as a good reference for whether they will have OASDI tax deferred. 

The OASDI deduction is found on your LES under the deductions tab/section.

Military members are not eligible to opt-out of the deferral if their Social Security wages fall within the stated limits. The deferral will happen automatically.

Civilian employees are not eligible to opt-out of the deferral if their Social Security wages fall within the stated limits. The deferral will happen automatically.

For questions on the temporary deferral of the 6.2% OASDI withholding:

• Visit the IRS page: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding 

For more information on financial readiness:

• Visit www.finred.usalearning.gov
• Military OneSource at https://www.militaryonesource.mil (1-800-342-9647)
• Call Goodfellow’s finance office at 325-654-5181

Editor’s note: Information compiled from: https://www.dfas.mil/taxes/Social-Security-Deferral/