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REPAYMENT OF DEFERRED 2020 SOCIAL SECURITY TAXES

posted January 4, 2021

Social Security taxes that were deferred from federal employees' pay over the last third of 2020 will now be collected in installments between pay periods ending January 16 and December 4, 2021.

For employees who separate or retire prior to the deferred 2020 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.

Social Security taxes were deferred from feds' pay for the last part of 2020 as the result of an Executive Order from the White House. That deferral ended December 31. The normal 6.2 percent Social Security tax is again being withheld from feds' pay as of January 1. The additional deduction for the deferred 2020 Social Security tax will also be taken.

It had previously been reported the deferred 2020 Social Security taxes would be due by April 30, 2021 and withheld from feds' pay between January and April. Congress extended the deferral repayment period through the end of 2021.

Throughout 2021, your myPay LES Remarks section will include the 2020 deferred OASDI (Social Security) collection amount in that pay period, as well as the remaining balance to be collected.

All FEA members are advised to check their LES carefully to monitor the amount deferred from their pay and their remaining balance owed to be certain the amounts remain consistent.

Information used in this update came from guidance issued by DFAS and is not meant to be interpreted as financial or tax advice. You may read the full guidance from DFAS here.