ALCOAST 329/20 - SEP 2020 COVID-19: PAYROLL TAX DEFERRAL

R 041244 SEP 20
FM COMDT COGARD WASHINGTON DC//CG-1//
TO ALCOAST
UNCLAS //N07401//
ALCOAST 329/20
COMDTNOTE 7401
SUBJ:  COVID-19: PAYROLL TAX DEFERRAL
A. Presidential Memorandum on Deferring Payroll Tax Obligations in Light of the
Ongoing COVID-19 Disaster
B. Internal Revenue Service Notice 2020-65 - Relief with Respect to Employment
Tax Deadlines 
1. This ACN message announces impending modifications to take-home pay for both
civilian employees and military members of the Coast Guard. For the months of
Sep, Oct, Nov, and Dec 2020, the employee portion of the Old Age, Survivors,
and Disability Insurance (OASDI) segment of the Federal Insurance Contribution
Act (FICA) tax, i.e., the 6.2% tax on employee wages (basic pay only for
military) will be deferred, not deducted from pay. The deferred payments will
be subtracted from paychecks in Jan, Feb, Mar, and Apr 2021 in addition to
regular withholding.   
2. REF (A) is the Presidential Memorandum and REF (B) provides additional
information. In essence this deferral:   
   a. applies to all civilians at or below $4000 per pay period;
   b. applies to all military members at or below $8,666 of basic pay only per
month;
   c. is non-negotiable, there is no opting-out of the deferral;
   d. will be collected in early 2021 unless the employee/member separates
prior to full collection, at which time it will be taken out of final pay. 
3. Additional information will be provided in the upcoming days.
4. Questions for military members regarding this deferral should be addressed
to: Compensation@uscg.mil
5. Question for civilian employees should be addressed to: USCG.ASK.HR@uscg.mil.
6. RADM J. M. Nunan, Assistant Commandant for Human Resources (CG-1), sends.
7. Internet release is authorized.