Federal Insurance Act Tax Withholding

Transcription

1 Authoritative Sources: JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 Business Process Standards: A business process standard was not directed by law or DoD policy. Business Rule Standards: Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_02 To support auditability and tax reports, the military payroll system shall maintain a pay history by pay period showing Federal Insurance Contributions Act (FICA) payroll computation factors and results as follows: 1. Duty Status - Member Duty Status captures the state of a DoD Military Service member relevant to his or her availability for duty; (i.e. confinement, separated, deceased, Unauthorized Absence, desertion, excess leave, etc.). The member's duty status is used with the Tour Pay Type to determine if the member is authorized pay and allowances for such duty status and the number of days payable 2. FICA Employer Share Tax Amount - The total amount of the employer's share of FICA taxes for the pay period 3. FICA Employer Share Tax Year-to-Date Amount - The total amount of the employer's share of FICA Tax for the tax year 4. FICA Employer Share Taxable Wages Amount - The total amount of the wages used to compute the employer's share of FICA taxes for the pay period 5. FICA Employer Share Taxable Wages Year-to-Date Amount - The total amount of the employer's share for FICA Taxable Wages for the tax year 6. FICA Medicare Tax Amount - The total amount computed for a specific pay, allowance, debt, deduction, allotment, tax, etc. for the pay period 7. FICA Medicare Tax Year-to-Date Amount - The total amount of the member's FICA Medicare Tax withholding for the tax year 8. FICA Medicare Taxable Wages Amount - The total amount of the military member's wages subject to Medicare Tax for the pay period 9. FICA Medicare Taxable Wages Year-to-Date Amount - The total amount of the member's FICA Medicare Taxable Wages for the tax year 10. FICA Social Security Tax Amount - The total amount computed for a specific pay, allowance, debt, deduction, allotment, tax, etc. for the pay period 11. FICA Social Security Tax Year-to-Date Amount - The total amount of the member's FICA Social Security Tax withholding or the tax year 12. FICA Social Security Taxable Wages Amount - The total amount of the military member's wages subject to Social Security tax for the pay period 13. FICA Social Security Taxable Wages Year-to-Date Amount - The total amount of the member's FICA Social Security Taxable Wages for the tax year. 14. Payroll Calendar Date - Used to identify the pay period the entitlement or deduction was computed to determine the member's gross or net pay for the pay period. For example: BAH With Dependent Rate is processed on April 29, 2011 with effective date April 25, The transaction was input after the cutoff date for the end-of-month April 2011 pay period; therefore, monies were computed in the mid-month May 2001 pay period. The Payroll Calendar Date is May 15, Note: Any date can be used as long as the date is Page 1 of 6

2 unique and identifies a specific pay period. In this example, May 15, 2011 is used to identify the mid-month May 2011 pay period (May 1, 2011 to May 15, 2011) and May 31, 2011 is used to identify the end-of-month May 2011 pay period (May 16, 2011 to May 31, 2011). 15. Tour Pay Type - The tour pay type in conjunction with the member's Duty Status used to determine the number of days the military member is authorized pay and allowances for the tour period and if the member is due pay and/allowance during a tour period. For example, drill tour, short tour and long tour. JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 CHRIS: Member Duty Status Member Reserve Component Active Duty Type Person Tax Withholding Type Person Tax Withholding Type Amount Person Wage Type Person Wage Type Amount Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_03 The military payroll system shall maintain a Federal Insurance Contributions Act (FICA) rate table: as follows: 1. FICA Medicare Tax Rate - The tax rate used to compute Medicare Tax for the pay period and tax year 2. FICA Social Security Maximum Taxes Rate - The maximum amount of Social Security taxes that can be ducted from the military member for the tax year. There is no tax limit for the employer's share of FICA taxes 3. FICA Social Security Maximum Wages Rate - The maximum wages of the military member subject to Social Security Taxes for the tax year. There is no wage limit for the employer's share of FICA taxes 4. FICA Social Security Tax Rate - The tax rate used to compute Social Security Tax for the pay period and tax year 5. FICA Tax Rate Begin Date - The start date for the Medicare and Social Security Tax rate 6. FICA Tax Rate End Date - The stop date for the Medicare and Social Security Tax rate CHRIS: DoD Military Pay Deduction Rate Start Date DoD Military Pay Deduction Rate Stop Date DoD Military Pay Deduction Rate Type Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_04 The military payroll system shall compute the FICA Social Security Taxable Wages Amount for the pay period as follows: 1. Determine the monthly Basic Pay Amount for the pay period 2. Minus the following deductions for the pay period: a. Courts-Martial Forfeiture Amount b. Courts-Martial Forfeiture Detained Amount c. Montgomery GI Bill (Standard) Amount d. Non-judicial Punishment Detained Amount Page 2 of 6

3 e. Non-judicial Punishment Forfeiture Amount 3. Add the result to the FICA Social Security Taxable Wages Year-to-Date Amount from the prior pay period and then compare the result to the FICA Social Security Maximum Wages Rate. 4. If needed, reduce the FICA Social Security Taxable Wages Amount so that the FICA Social Security Taxable Wages Year-to-Date Amount for the pay period does not exceed the FICA Social Security Maximum Wages Rate. Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_05 The military payroll system shall compute the FICA Medicare Taxable Wages Amount for the pay period as follows: 1. Determine the monthly Basic Pay Amount for the pay period 2. Student Loan Repayment Program Installment Payment Amount for the pay period 3. Add the Basic Pay Amount to the Student Loan Repayment Program Installment Payment Amount 3. Minus the following deductions for the pay period: a. Courts-Martial Forfeiture Amount b. Courts-Martial Forfeiture Detained Amount c. Montgomery GI Bill (Standard) Amount d. Non-judicial Punishment Detained Amount e. Non-judicial Punishment Forfeiture Amount Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_06 The military payroll system shall compute the FICA Social Security Tax Amount and the FICA Social Security Year-to-Date Amounts for the pay period as follows: 1. FICA Social Security Tax Amount a. Determine the FICA Social Security Tax Rate for the current tax year b. Determine the FICA Social Security Taxable Wages Amount c. Multiply the FICA Social Security Tax Rate times the FICA Social Security Taxable Wages Amount 2. Year-to-Date Amounts: a. Add the FICA Social Security Tax Amount to the FICA Social Security Tax Year-to-Date Amount b. Add the FICA Social Security Taxable Wages Amount to the FICA Social Security Taxable Wages Year-to-Date Amount Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_07 The military payroll system shall compute the FICA Medicare Tax Amount and FICA Medicare Tax Year-to-Date Amount for the pay period as follows: Page 3 of 6

4 1. FICA Medicare Tax Amount a. Determine the FICA Medicare Tax Rate for the current tax year b. Determine the FICA Medicare Taxable Wages Amount c. Multiply the FICA Medicare Tax Rate times the FICA Medicare Taxable Wages Amount 2. Year-to-Date Amounts: a. Add the FICA Medicare Tax Amount to the FICA Medicare Tax Year-to-Date Amount b. Add the FICA Medicare Taxable Wages Amount to the FICA Medicare Taxable Wages Year-to-Date Amount Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_08 The military payroll system shall compute and the FICA Employer Share Tax Amount and the FICA Employer Share Tax year-to date amounts for the pay period as follows: 1. FICA Employer Share Tax Amount a. Determine the FICA Employer Share Tax Rate for the current tax year b. The FICA Employer Taxable Wages Amount equals the Medicare Taxable Wages Amount c. Multiply the FICA Employer Share Tax Rate times the FICA Employer Share Taxable Wages Amount 2. Year-to-Date amounts: a. Add the FICA Employer Share Taxable Wages Amount to the FICA Employer Shares Taxable Wages Year-to-Date Amount b. Add the Employer Share Tax Amount to the FICA Employer Share Tax Year-to-Date Amount Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_09 For retroactive entitlements and deductions, the military payroll system shall: 1. Deduct Social Security and Medicare at the rates in effect at the time of the member was paid the monies 2. Refund Social Security and Medicare at the rates in effect at the time the member was paid the monies 3. Make all adjustments in the current quarter and report adjustment on the current year W-2 statement Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_10 The military payroll system shall automatically deduct FICA tax from any member appointed to, enlisted in, or inducted into any Military Service and military component. Page 4 of 6

5 Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_11 The military payroll system shall not deduct FICA tax from foreign nationals attending the US Military Academies. Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_12 The system shall automatically stop Social Security (OASDI) payroll deduction when: 1. The member s Social Security Tax Withholding Year-to-Date Amount equals the Social Security Tax Maximum Withholding Rate 2. The member s Social Security Year-to-Date Taxable Wages Amount equals the Social Security Maximum Taxable Wages Rate Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_13 The military payroll system shall deduct FICA tax regardless of any amounts previously or currently being deducted by another employer. 1. Each Military Service is considered a separate employer; however, cross-servicing of a member s pay account between the Military Services does not constitute a change of employer. 2. A break in service of any length within the same Military Service does not constitute a change of employer. 3. Consider all FICA tax withheld during the calendar year in determining the total amount withheld. Federal_Income_Contribution_Act_Tax_Withholding_Computation_28_003_14 The military payroll system shall refund Social Security Tax Withholding if the amount collected is in excess of the Social Security Maximum Tax Withholding Rate. Appendix A: Common Human Resource Information Standards DoD Military Pay Deduction Rate Start Date DoD Military Pay Deduction Rate Start Date is the calendar date on which a DoD military pay deduction rate begins. DoD Military Pay Deduction Rate Stop Date DoD Military Pay Deduction Rate Stop Date is the calendar date on which a DoD military personnel deduction rate ends. Page 5 of 6

6 DoD Military Pay Deduction Rate Type DoD Military Pay Deduction Rate Type is the classification of a DoD military pay deduction rate. Member Duty Status Member Duty Status is the classification assigned to a DoD Military Service member with regard to his/her availability for duty within an assigned organization. Member Reserve Component Active Duty Type Member Reserve Component Active Duty Type is the classification of an active duty period for which a Reserve Component DoD Military Service member performs. Person Tax Withholding Type Person Tax Withholding Type is the is the classification of taxes to be withheld from a person's wages. Person Tax Withholding Type Amount Person Tax Withholding Type Amount is the type of amount withheld from a person's wages for tax purposes. Person Wage Type Person Wage Type is the classification of a person's pay and allowance earnings subject to various tax types. Person Wage Type Amount Person Wage Type Amount is the dollar amount of wages paid to a person that is subject to a specific wage type. Page 6 of 6