PATRICK SPACE FORCE BASE, Fla. --
This notice provides an update to the prior notification, Subject "Collection of 2020 Social Security Tax Deferral" sent December 18, 2020.
The Consolidated Appropriations Act, 2021 was passed and extended the period for collecting deferred 2020 Social Security taxes. The period for collection is now January 1 through December 31, 2021 (instead of January 1, 2021 to April 30, 2021).
- The amount of Social Security taxes deferred in 2020 will be collected in 24 installments between pay periods ending January 16 and December 4, 2021.
- Normal 6.2% Social Security tax withholdings will also be deducted from your pay, beginning January 2021.
- Beginning in January 2021, your myPay LES Remarks section will show the 2020 deferred OASDI collection amount as well as your remaining balance to be collected.
- If you separate or retire before December 4, 2021, and prior to the deferred Social Security tax being collected in full, you are still responsible for the remainder of your Social Security tax repayment. The unpaid balance will be collected from your final pay. If there are insufficient funds to collect the full amount, you may receive a debt letter with instructions for repayment.
Pursuant to IRS Notice 2020-65 and at the direction of the Office of Management and Budget and Office of Personnel Management, Social Security (Old Age, Survivors, and Disability Insurance) or "OASDI" tax withholdings were temporarily deferred from September through December 2020 and will be collected from wages paid between January 1, 2021 and December 30, 2021, for employees who had wages subject to OASDI of less than $4,000 in any given pay period. These actions were in response to the Presidential Memorandum issued on August 8, 2020.
For additional information to include Frequently Asked Questions, visit: https://www.dfas.mil/taxes/Social-Security-Deferral/.
- Tax Deferral Implementation: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding
- W-2 Reporting: https://www.irs.gov/forms-pubs/form-w-2-reporting-of-employee-social-security-tax-deferred-under-notice-2020-65
For questions on the collection of the temporary tax deferral, contact your Agency's Customer Service Representative.
For more information on impacts of the payroll deferral, consult with a private financial advisor.