Dear Public Health Service Officers,
In order to help with financial burdens caused by the COVID-19 pandemic, an executive order was signed by President Trump that will temporarily defer payroll taxes for certain federal employees, including uniformed service members, from September 1 to December 31, 2020.
For United States Public Health Service (USPHS) Commissioned Corps officers who receive less than $8,666.66 per month for basic pay, USPHS will temporarily defer the withholding of your 6.2% Social Security tax. If your monthly rate of basic pay is at or above this threshold, your social security tax withholding will not be affected by the temporary deferral.
Key Facts:
– The Social Security tax is labeled as “FICA-SOC SECURITY” and is calculated as 6.2% of your basic pay.
– This change is effective through the end of the 2020 calendar year and only applies to your Social Security tax withholding. Normal withholding of your FICA-Social Security taxes will resume effective January 1, 2021.
– You are not eligible to opt-out of the deferral if your basic pay falls within the stated wage limits. The deferral will happen automatically.
– In accordance with current Internal Revenue Service guidance, collection of the deferred taxes will be taken from your wages between January 1 and April 30, 2021. Additional information on the collection process will be provided in the future.
– If you separate or retire in 2020 before the Social Security tax can be collected in 2021, you are still responsible for the Social Security tax repayment.
As more information becomes available, it will be posted on:
https://www.dfas.mil/taxes/Social-Security-Deferral/.
For questions on the temporary deferral of the 6.2% Social Security withholding:
– Visit the IRS page: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding.
Should you have additional questions, please do not hesitate to contact CCHQ Financial Services Branch at PHSCompensationBranch@hhs.gov.
Sincerely,
Susan M. Orsega
RADM, USPHS
Director, Commissioned Corps Headquarters