Social Security Payroll Tax Deferral

New for 2022

Collection of deferred taxes for active duty military members is complete. For information on continued collection of Civilian Employee OASDI, click here.
 
Reserve and National Guard members have a new way to pay off their remaining 2020 SOCIAL SECURITY TAX balance
 
Per the Presidential memorandum issued on August 8, 2020, the Social Security taxes of Reserve and National Guard members were deferred from September through December 2020. The deferred taxes were to be repaid by the end of 2021. However, despite DFAS’s ongoing efforts to collect the deferred taxes from wages, many Reserve and National Guard members have not repaid all of the Social Security taxes that were deferred in 2020. Due to the intermittent nature of many Reserve/Guard members’ duty schedules, collections through payroll deductions are not expected to repay the entirety of the balance owed by December 31, 2022.

For that reason, DFAS is excited to introduce a new, quick and easy mobile app that members may use to pay their remaining deferred tax balances.

Starting in July 2022, the DFAS will begin sending invoices via email to Reserve and National Guard members who have remaining 2020 Social Security tax balances. The invoice will contain instructions for how to make a payment using the mobile app (see ‘how to pay’ below).
We encourage all members who receive an invoice to take full advantage of this new and convenient payment method to satisfy their deferred tax balances. The benefit of using this method of payment will be to avoid the issuance of a W-2C (Corrected Wages and Tax Statement). Members who do not repay will be issued a W-2C. The W-2C will reflect the unpaid amount as additional wages subject to income tax, which may require members to file an amended tax return and incur fees from their tax preparer.

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.
 If you have not received an invoice, you can request one by using this link: https://corpweb1.dfas.mil/askDFAS/ticketInput.action?subCategoryID=21924

Still have questions? See the FAQs below


DFAS Pay App FAQs (Click to link)


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 June 30, 2022