Social Security Payroll Tax Deferral – Civilian Employees
What to expect in 2022
In response to a Presidential Memorandum issued on August 8, 2020, Social Security (Old Age, Survivors, and Disability Insurance) or “OASDI” tax withholdings were temporarily deferred from most service members and civilian employees from September through December 2020 and were collected back from wages paid from January to December 2021.
The majority of collections were completed in 2021; however, collections will continue from some members who have not repaid their deferred taxes in full during 2021.
Corrected 2020 W-2Cs, reflecting full withholding of the employee’s share of Social Security taxes in box 4 of the W-2, will be issued to employees who had their Social Security (Old Age, Survivors, and Disability Insurance) or “OASDI” collected in full by pay period ending December 18, 2021. Per IRS guidance, no further steps are required if you had only one employer in 2020 and your 2020 Form W-2C only shows a correction to box 4. You should consult with your tax preparer about any questions.
In instances of employees in non-pay status, Social Security taxes (OASDI) were unable to be collected in full. Collection of the remaining balances for these employees will be deducted from pay beginning with the pay period ending January 15, 2022. The collection amount will be calculated based on the current balance spread over 8 pay periods. See more information on this collection in the Civilian Pay Fact Sheet.
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. Collection will occur through the debt management process. You will receive a debt letter via US mail which will provide instructions for repayment. Payments can be made online via Pay.gov.
Still have questions? See the Civilian FAQs for more information.
Page Updated June 27, 2022