HomeNewsArticle Display

Civilian Payroll office answers latest deferred OASDI questions

Social Security Payroll Tax Deferral

Social Security Payroll Tax Deferral UPDATE: 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, 2021 through December 31, 2021 (instead of January 1, 2021 to April 30, 2021).

Deferred OASDI FAQ

Why does my employee have a debt reported on their LES?

Deferred OASDI will be collected as a debt in 24 pay periods in 2021. The debt module will manage the payments and year to date adjustments.

As an active employee do I have to pay through payroll deductions?

We are not able to accept checks, pay.gov or other forms of payments for these debts, they must be collected through payroll deductions

Can my active employee repay it in less than 24 pay periods? Can I adjust the amount deducted biweekly?

Yes, just submit a Voluntary Repayment Agreement through Remedy or Fax and the debt team will process. We are not able to reduce the amount to less than the 24 pay periods. If an employee is in an unpaid status and not able to have deductions taken they will continue beyond the 24 pay periods.

My employee changed jobs during the deferred OASDI timeframe of 09/12/20-12/21/20 and has an inactive debt and an active debt, can they have the inactive debt moved to the active account?

Yes, please submit a Voluntary Repayment Agreement ticket and the team will move the debt to the new account and set the payments to be collected by December 4th .

My employee is separating before December 4th what will happen?

The debt will attempt to collect in full from final pay and any remaining balance will be collected by out of service procedures.

Will my employees receive a corrected W-2 to report the additional OASDI collections?

For the debts set to collect by payroll deductions, yes, W-2 corrections will be generated in December 2021. Information on the submission of the W-2Correction is not available at this time. The debts that had letters sent to the employees have already had the adjustments reflected in the 2020 W-2 and no correction is necessary.

My employee received a debt letter, can they repay by check or pay.gov?

Yes, any employee that received a physical copy of a debt letter or one through MyPay can repay using the terms included in the letter.

My employee did not ask for the deferral, why did you defer the OASDI and do they have to pay it back?

IRS Notice 2020-65 and the Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, ordered government agencies to implement the deferral of OASDI taxes

How can active employees verify the amount of deferred OASDI owed?

Employees can review their LES and note the year to date amount deducted for OASDI in the DEDUCTIONS block, then refer to the BENEFITS PAID BY GOVERNMENT FOR YOU block and note the year to date OASDI amount paid on behalf of the employee. If there is no deferral, the amounts would match. If the amount in the DEDUCTIONS block is less, then the difference between the two numbers is the debt amount. CSR's can also review the debt module and match the amount to the amount of UJ Employer Contribution to OASDI in the DCPS Pay history.

How can inactive employees verify the amount of deferred OASDI owed?

Inactive employees can review their LES's and note the amount paid in each pay period in the BENEFITS PAID BY THE GOVERNMENT FOR YOU block and any pay dates without a corresponding OASDI collection is owed back to the government.