2020 TEMPORARY DEFERRAL OF SOCIAL SECURITY TAXES

[Tony]

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SUBJ/2020 TEMPORARY DEFERRAL OF SOCIAL SECURITY TAXES//

REF/A/MEMO/PRESIDENTIAL/8AUG2020//
NARR/REF A IS A MEMORANDUM FROM THE PRESIDENT OF THE UNITED STATES, DEFERRING 
PAYROLL TAXES IN LIGHT OF THE ONGOING COVID-19 DISASTER.

RMKS/1.  In line with reference (a), this NAVADMIN announces the temporary 
deferral of social security (old age, survivors and disability insurance 
(OASDI), as seen on the leave and earnings statement (LES) as *FICA-SOC 
SECURITY*), tax withholdings through the end of the 2020 calendar year for 
Navy members to provide relief during the coronavirus disease 2019 pandemic.  
Collection of the deferred taxes will be taken from wages between 1 January 
and 30 April 2021.

2.  Effective September 2020 mid-month pay, the Defense Finance and 
Accounting Service (DFAS) will temporarily defer the withholding of

6.2 percent social security tax for active and reserve Sailors and midshipmen 
if the monthly rate of basic pay is less than 8,666.66 dollars.  If the 
monthly rate of basic pay is at or above this threshold, social security tax 
withholding will not be affected by the temporary deferral.

3.  Key facts
    a.  The social security tax is labeled as *FICA-SOC SECURITY* on the LES 
and is calculated as 6.2 percent of basic pay.
    b.  This change is effective through the end of the 2020 calendar year 
and only applies to social security tax withholding.
Normal withholding of FICA-Social Security taxes will resume effective 1 
January 2021.  In addition, collection of the deferred taxes will be taken 
from wages between 1 January and 30 April 2021.
Sailors who separate or retire in 2020 before the social security tax can be 
collected in 2021 are still responsible for the social security tax 
repayment.
    c.  Personnel are not eligible to opt-out of the deferral if their basic 
pay falls within the stated wage limits.  The deferral will happen 
automatically.

4.  Members will also receive notification from DFAS via Smartdocs.
Additional information is available at
https://www.dfas.mil/taxes/Social-Security-Deferral/.

5.  Personnel with questions regarding the 2020 temporary deferral of social 
security taxes are encouraged to contact their Command Financial Specialist, 
a Personal Financial Manager at Fleet and Family Services or Military One 
Source online at https://www.militaryonesource.mil, or contact MyNavy Career 
Center, available 24/7, by phone at (833) 330-MNCC ((833) 330-6622) or via e-
mail at askmncc(at)navy.mil.

6.  This NAVADMIN will remain in effect until superseded or canceled, 
whichever occurs first.

7.  Released by Vice Admiral John B. Nowell, Jr, N1.//

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