Posted on Dec 27, 2020
New in 2021: Your military paycheck is about to get smaller
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"Service members saw their basic pay increase by 6.2 percent starting in September, as the result of a Social Security payroll tax deferral put into place by President Donald Trump’s Aug. 8 memorandum, and subsequent Internal Revenue Service guidance. But they now have to pay it back, in addition to the payroll tax resuming."
New in 2021: Your military paycheck is about to get smaller
Posted from militarytimes.com
Military Pay
Personal Finance
Taxes
Money
Posted 4 y ago
Responses: 3
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This was one of many stupid things trump did to the service members and civilians, especially not allowing us to OPed out.
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Yes - but I read something that said they are spacing it out over the entire year so even less will come back out.
He never should have done this in the first place as it didn't help anyone at all.
He never should have done this in the first place as it didn't help anyone at all.
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SFC Kelly Fuerhoff
https://www.foxbusiness.com/economy/military-extended-repaying-deferred-social-security-taxes
"The $2.3 trillion omnibus spending bill and COVID-19 relief package passed by Congress Monday night includes an extended timetable for how soon U.S. troops and federal employees have to pay back deferred Social Security taxes, thereby reducing the hit to their paychecks next year."
"Starting in January, many service members would have faced double withholding for the first four months of the year to make up for the deferred taxes. But under the new spending bill, the timetable for repaying the taxes is extended through the end of 2021.
"Now military families and federal workers will see that repayment spread across a much larger number of pay periods, minimizing their short-term decrease in income," Rep. Don Beyer, D-Va., a member of the House Ways and Means Committee who pushed for the extension, said after the spending bill was passed."
"The $2.3 trillion omnibus spending bill and COVID-19 relief package passed by Congress Monday night includes an extended timetable for how soon U.S. troops and federal employees have to pay back deferred Social Security taxes, thereby reducing the hit to their paychecks next year."
"Starting in January, many service members would have faced double withholding for the first four months of the year to make up for the deferred taxes. But under the new spending bill, the timetable for repaying the taxes is extended through the end of 2021.
"Now military families and federal workers will see that repayment spread across a much larger number of pay periods, minimizing their short-term decrease in income," Rep. Don Beyer, D-Va., a member of the House Ways and Means Committee who pushed for the extension, said after the spending bill was passed."
Military, federal workers will likely get extensions for repaying deferred taxes
The $2.3trillion omnibus spending bill and COVID-19 relief packagepassed by Congress Monday night includes an extendedtimetable for how soon U.S. troops and federal employeeshave to pay back deferred Social Security taxes, thereby reducing the hit to their paychecks next year.
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Commands were prepaired to advise Service Members on how to manage the net gain in order to meet the intent. Financial management and planning is something that needs to be covered more as a SM grows. Bottom line there was a net gain, give the SMS a little more credit.
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