OASDI stands for Old Age, Survivors, and Disability Insurance program. It is often referred to as Social Security tax. The tax funds the Social Security program, which is administered by the Social Security Administration. Your OASDI deduction is found on your LES under the deductions tab/section. The deduction is 6.2% of your wages subject to OASDI.

In order to provide relief during the COVID-19 pandemic, per a Presidential Memorandum issued on August 8, 2020, and Internal Revenue Service Notice 2020-65 issued on August 28, 2020, the OASDI tax withholdings of employees who met the wage threshold were deferred.
Presidential Memorandum link: https://www.federalregister.gov/documents/2020/08/13/2020-17899/deferring-payroll-tax-obligations-in-light-of-the-ongoing-covid-19-disaster

IRS Tax Deferral Implementation:  https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding

IRS Notice 2020-65: https://www.irs.gov/pub/irs-drop/n-20-65.pdf

IRS Notice 2020-65: https://www.irs.gov/pub/irs-drop/n-21-11.pdf

 

If your wages subject to OASDI were less than $4,000 in any pay period from the pay period ending September 12, 2020 through December 19, 2020, OASDI taxes on the wages in that pay period were deferred. Wages subject to OASDI are gross wages less Federal Employees Health Benefits (FEHB), Dental, Vision, and Health/Flexible Spending Accounts (HSA/FSA).

The OASDI tax deferral was effective for applicable employees beginning pay period ending September 12, 2020. If you had wages subject to OASDI of less than $4,000 in any pay period between the pay periods ending September 12, 2020 and December 19, 2020, the OASDI tax withholdings on those wages were deferred.

OASDI tax is set by law at 6.2% of wages that are subject to OASDI. Wages subject to OASDI are gross wages less Federal Employees Health Benefits (FEHB), Dental, Vision, and Health/Flexible Spending Accounts (HSA/FSA). A good reference on your LES is your Taxable Wages listed on the Summary tab in myPay.

In instances of employees in non-pay statuses, Social Security Tax, also known as OASDI, balances were unable to be collected in full.

Collection of the remaining balance will continue to be deducted in 2023. The collection rate will be the same collection rate as the end of 2022.

OASDI Balances are found in the remarks section of the Leave and Earnings Statements (LES). The remark reads:  “XX.XX COLLECTED THIS PAY PERIOD FOR A $ XXXX.XX OASDI CORRECTION DEBT IN ACCORDANCE WITH 5 U.S.C. 5514.”

Corrected W-2Cs for tax year 2020 correcting Box 4 will be issued to employees by January 2023.

If you are planning to or have separated in 2022:
If you separated or retired in 2022, before the deferred Social Security tax is collected in full, you are still responsible for the remainder of your Social Security tax repayment. The unpaid balance will be collected from your final pay. If there are insufficient funds to collect the full amount, you may receive a letter with instructions for repayment.

For debts less than $25:
Employees who receive a letter with a total debt balance less than $25 will be given a total of 60 days to pay in full. If not paid within the 60 days, a 2020 W-2C will be issued to the employee, reporting the unpaid debt amount as additional wages earned, which may require the employee to file an amended 2020 tax return.   
 

The government will pay the deferred Social Security taxes to the IRS on your behalf, and you will owe DFAS for this repayment. Collection will occur through the debt management process. A letter will be posted in your myPay account in January 2022, as well as sent to your address of record via US Mail. The debt letter will provide instructions for repayment; payments can be made online via Pay.gov.

An invoice will be sent in December of 2022 giving you additional payment options; either through pay.gov or check. The additional payment options are not required and you are allowed to complete payment through salary deduction. Salary deduction will only occur when you have an active Civilian payment to pull funds from. 

No. Pursuant to the Department of Treasury and the Internal Revenue Service Guidance, the deferral only affects your Social Security tax withholding on wages earned from September 2020 through the end of the calendar year 2020.

Department of Treasury and the Internal Revenue Service guidance link:

https://www.irs.gov/pub/irs-drop/n-20-65.pdf

https://www.irs.gov/pub/irs-drop/n-21-11.pdf

Per IRS guidance, if you had only one employer during 2020 and your Form W-2c (Corrected Wages and Tax Statement) for 2020 only shows a correction to box 4 to account for employee Social Security tax that was deferred in 2020 and withheld in 2021 and/or 2021 pursuant to IRS Notice 2020-65, no further steps are required.

If you had two or more employers in 2020 and your Form W-2c for 2020 shows a correction to box 4, please see https://www.irs.gov/forms-pubs/form-w-2-reporting-of-employee-social-security-tax-deferred-under-notice-2020-65 for more information.

Please note, if you separated/retired in 2020, you may not be issued a Form W-2c.