H.E.R.O.E.S. Care January 2013 Newsletter
- H.E.R.O.E.S. Care
The legislation that President Barack Obama signed Jan. 2 that postponed the fiscal cliff means changes to military and civilian paychecks, Defense Finance and Accounting Service officials said.
The legislation increases Social Security withholding taxes to 6.2 percent. For the past two years during the “tax holiday” the rate was 4.2 percent.
The increase in Social Security withholding taxes affects both military and civilian paychecks, officials said.
For civilian employees, officials said, this will mean a 2 percent reduction in net pay.
For military personnel, changes to net pay are affected by a variety of additional factors such as increases in basic allowances for housing, subsistence, longevity basic pay raises and promotions.