Repayment of 2020 Social Security Taxes
Support information regarding 2020 Social Security taxes not paid from Sep–Dec 2020. Taxes will be collected in 24 installments (January 1 – December 30, 2021) from mid-month and end-of-month pay. People will have automatic payroll deductions for repayment of 2020 Social Security Taxes

Additional information:
https://www.dfas.mil/taxes/Social-Security-Deferral/
https://www.marines.mil/News/Messages/Messages-Display/Article/2479857/collection-of-2020-social-security-tax-deferral

Filing Your Taxes on Base
Additional information: https://www.pendleton.marines.mil/Services/Income-Tax-Assistance/

Filing Your Taxes via Military 1 Source
Service members and eligible patrons needing tax preparation and e-filing software available by Military 1 Source. Military 1 Source offers support from Jan 19 through mid-Oct online.

WHO
Employees/Service Members who made less than $4,000 in a two-week period before taxes or $104,000 annually, whose 2020 Social Security Taxes were deferred.

WHAT
At the end of December, the 2020 Social Security tax deferral ended. Beginning January 2021, the normal 6.2% Social Security tax withholdings will again be deducted and you will also see an additional deduction for the deferred 2020 Social Security tax collection taken from your pay.

Collection Process:
Per IRS guidance (as modified by the Consolidated Appropriations Act, 2021), the Social Security taxes deferred in 2020 will be collected from pay between January 1 and December 31, 2021.

Military Members

• For active duty military members, the 2020 deferred Social Security taxes will be collected in 24 installments, from your mid-month and end-of-month pay between January 1 and December 30, 2021.
• For reservists and guardsmen performing intermittent duty in 2021, the amount collected may not be the same every pay period. DFAS will collect 2% of net available from each weekly, mid-month and end-of-month pay, and will continue until the deferred taxes have been repaid in full.
• Beginning in January 2021, your myPay LES will reflect the monthly collection amount and contain a note in the remarks section that shows the remaining balance of deferred Social Security taxes.

Civilian Employees

• 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.
• Beginning in January 2021, your myPay LES Remarks section will include the 2020 deferred OASDI collection amount in that pay period, as well as the remaining balance to be collected.
• If you separate or retire prior to the deferred Social Security tax being collected in full the unpaid balance will either be collected from your final pay or you may receive a debt letter with instructions for repayment.

WHEN
Automatic collection will begin January 2021 through December 2021.

WHERE
There is no action on your part, the collection will be automatic and you will be able to see the amount on your Leave and Earning Statements.

WHY
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 31, 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.

If you have any questions, please reach out to your Chain of Command, Human Resources, or one of the MCCS Personal Finance Managers at: (760) 829-0175 | (760) 829-0245 | (760) 829-0105.

Thrift Savings Plan (TSP) What is it? TSP is a retirement savings and investment plan for Federal employees and members of the Uniformed Services.

• Established in 1986
• Opened to Military in 2000
• Offers similar savings and tax benefits as 401(k) plans
• One of the largest defined contribution plans in the world
• Administered by the Federal Retirement Thrift Investment Board (FRTIB)
• Defined Contribution Plan

TSP Advantages

• Contributions to the TSP are yours no matter how long you serve
• Automatic payroll deductions
• A diversified choice of investment options
• A choice of tax treatments for your contributions
• Low expenses
• If in Blended Retirement System (BRS), you receive contributions from your Service
• In certain circumstances, you can access your money while still a member of the Uniformed Services

Types of TSP Plans

• Matching contributions for those in the Blended Retirement System (BRS)
• A major difference between the “High-3” or legacy retirement system and the new BRS is that the new blended system requires a traditional TSP account for Service Members where the Government will contribute to the account along with the member.
• If your DIEMS date is on or after 1 January 2019, a traditional TSP account was automatically set up for you.
• All agency contributions go to a traditional TSP account, but your contributions can go to a traditional TSP account, a Roth TSP account or a combination of both.

Learn More about the TSP Useful educational websites include:

• TSP.gov
• https://militarypay.defense.gov/BlendedRetirement/
• https://www.marinenet.usmc.mil/MVS/Channel/Home.aspx?Id=14