Social Security Payroll Tax Deferral

Collection of deferred taxes for active duty military members is complete. For information on continued collection of Civilian Employee OASDI, click here.
 
All remaining Reserve and National Guard members who had outstanding 2020 deferred Social Security tax balances during 2022 will be issued a 2020 W-2C.

In January 2023, you will receive a W-2C for Tax Year 2020 showing an adjustment to box 4 that reflects that the DoD has collected the deferred Social Security taxes for 2020.

You will receive a subsequent message once your 2020 W-2C has been made available in your myPay account. 

Per IRS guidance, if you had only one employer during 2020 and your 2020 W-2C only shows a correction to box 4 to account for employee Social Security tax that was deferred in 2020 and withheld in 2021 or 2022, pursuant to IRS Notice 2020-65, no further steps are required. (See https://www.irs.gov/forms-pubs/form-w-2-reporting-of-employee-social-security-tax-deferred-under-notice-2020-65).
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Reserve and Guard members who still have a remaining 2020 deferred Social Security tax balance in 2023.

If you are unsure if you still have a remaining balance, please review your current Leave and Earnings Statement (LES). If you have not repaid all of the deferred Social Security taxes, there will be a note in the remarks section that reads “EMPLOYEE SHARE FICA DEBT BALANCE $XX.XX”.
Despite DFAS’s ongoing efforts to collect the deferred taxes from wages, a few Reserve and National Guard members have not repaid all of the Social Security taxes that were deferred in 2020. These members will still be issued a 2020 W-2C in January 2023, and payroll collections will continue until paid in full. However, for these members, DFAS has introduced a new, quick and easy mobile app that members may use to pay their remaining deferred tax balances. To begin this process, service members can request an invoice with pay off instructions by using this link: https://corpweb1.dfas.mil/askDFAS/ticketInput.action?subCategoryID=21924.

The invoice will contain instructions for how to make a payment using the mobile app (see ‘how to pay’ below).

Logo for the payDFAS App

How to Pay:
  1. Download the payDFAS app from the Apple or Google app store.
  2. Select “Make a New Payment”
  3. Scan the QR code from your invoice.
  4. Make your payment using the payment options in the app.
  5. Receive confirmation of payment by email.
Still have questions? See our payDFAS FAQs

Additional Resources 


Visit the IRS pages:
Tax Deferral Implementation: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding
 
W-2 Reporting: https://www.irs.gov/forms-pubs/form-w-2-reporting-of-employee-social-security-tax-deferred-under-notice-2020-65
Page updated January 18, 2023