Social Security Payroll Tax Deferral

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Social Security Payroll Tax Deferral

2020 Social Security Payroll Tax Deferral Information from DFAS

by Taurus James (20+ years)

Did you  know about the 2020 Social Security Payroll Tax Deferral? Here is some information from DFAS.

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Image for Social Security Payroll Tax Deferral – Taurus James (20+ years)

Tags: Social Security Payroll Tax Deferral, social security, deferral, payroll, IRS, taxes, military pay, personal finance, DFAS

What Is This?

"Notice 2020-65 authorizes the deferral of the 6.2 percent of employee-paid Social Security tax (and railroad retirement tax equivalent) on the first $137,700 of wages for payroll tax obligations beginning Sept. 1, 2020 through Dec. 31, 2020 (Applicable Taxes)."

From SHRM.og

The deferral is not mandatory.

Why This Is Important To Civilian Male Military Spouses

This is about MONEY, the IRS and you (your spouse).

"Per IRS guidance (as modified by the Consolidated Appropriations Act, 2021), the Social Security taxes deferred in 2020 will be collected from pay between January 1 and December 31, 2021."

"Military Members -
For active duty military members, the 2020 deferred Social Security taxes will be collected in 24 installments, from your mid-month and end-of-month pay between January 1 and December 30, 2021.

For reservists and guardsmen performing intermittent duty in 2021, the amount collected may not be the same every pay period. DFAS will collect 2% of net available from each weekly, mid-month and end-of-month pay, and will continue until the deferred taxes have been repaid in full.

Beginning in January 2021, your myPay LES will reflect the monthly collection amount and contain a note in the remarks section that shows the remaining balance of deferred Social Security taxes."

Again, the deferral is not mandatory, but you may want to check where you stand with the IRS.

More Info From The Source

Social Security Payroll Tax Deferral

DFAS.mil

Here's How Troops Will Repay Suspended Payroll Taxes in 2021

Military.com

Also, check out The Men's Room (private Facebook group).

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Taurus M. James Male Military SpouseTaurus James, 20+ years, Civilian Male Military Spouse to a US Air Force Officer.

 

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