R 111742Z SEP 20 MID200000097985U
FM CNO WASHINGTON DC
INFO CNO WASHINGTON DC
PASS TO OFFICE CODES:
FM CNO WASHINGTON DC//N1//
INFO CNO WASHINGTON DC//N1//
MSGID/GENADMIN/CNO WASHINGTON DC/N1/SEP//
SUBJ/2020 TEMPORARY DEFERRAL OF SOCIAL SECURITY TAXES//
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
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
4. Members will also receive notification from DFAS via Smartdocs.
Additional information is available at
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.//