FICA (Federal Insurance Contributions Act) requires Federal Agencies to withhold Social Security and Medicare taxes from the basic pay of military members covered by the Social Security Act and to pay matching FICA taxes to the Social Security Administration.
All members in any Military Service position is subject to FICA tax, including service in:
- A Military Service Academy (excluding foreign nationals)
- Aviation cadet status
- A combat zone
Wages subject to FICA withholding include:
- Basic pay (excluding reduction for educational benefits under Montgomery G.I. Bill)
- Inactive duty compensation
- Taxable amounts earned but unpaid at the date of death (subject to the maximum earnings tax) if paid to the beneficiary during the same calendar year in which the member’s death occurs
- Basic pay or compensation earned during an absence that is the result of injury, sickness, or hospitalization;
- Taxable amounts received prior to Government’s voidance of member’s enlistment contract
Deductions will be discontinued when the total active duty basic pay plus inactive duty compensation equals the maximum annual earnings subject to FICA withholding, and when the maximum tax has been deducted. There is no cap on wages subject to the withholding of Medicare tax.
FICA Percentages-Max Taxable Wages-Max Tax
| Year | Social Security (OASDI) Tax | Max FICA Wages | Max Tax | Medicare (Hospital Insurance) Tax | Max Medicare Tax |
|---|---|---|---|---|---|
| 2019 | 6.20% | $132,900 | $8,239.80 | 1.45% | Unlimited |
| 2018 | 6.20% | $128,400 | $7,960.80 | 1.45% | Unlimited |
| 2017 | 6.20% | $127,200 | $7,886.40 | 1.45% | Unlimited |
| 2016 | 6.20% | $118,500 | $7,347.00 | 1.45% | Unlimited |
| 2015 | 6.20% | $118,500 | $7,347.00 | 1.45% | Unlimited |
| 2014 | 6.20% | $118,500 | $7,254.00 | 1.45% | Unlimited |
| 2013 | 4.20% | $113,700 | $7,049.40 | 1.45% | Unlimited |
| 2012 | 6.20% | $110,100 | $4,624.20 | 1.45% | Unlimited |
| 2011 | 6.20% | $106,800 | $4,485.60 | 1.45% | Unlimited |
| 2010 | 6.20% | $106,800 | $6,621.60 | 1.45% | Unlimited |
| 2009 | 6.20% | $106,800 | $6,621.60 | 1.45% | Unlimited |
| 2008 | 6.20% | $102,000 | $6,324.00 | 1.45% | Unlimited |
| 2007 | 6.20% | $106,800 | $6,621.60 | 1.45% | Unlimited |
| 2006 | 6.20% | $94,200 | $5,840.40 | 1.45% | Unlimited |
| 2005 | 6.20% | $90,000 | $5,580.00 | 1.45% | Unlimited |
NOTE: If the current year is not listed, see the “Contribution and Benefit Base” on the Social Security Administration website.
Note* Waived portions of forfeitures of basic pay payable to dependent(s) of a confined member as prescribed in Chapter 48, subparagraph 480307.C.
Additional Leave and Earning Statement (LES) Deductions
Additional deductions from the LES statement may include:
- Tax withholdings (FITW and SITW)
- Debt collections e.g. garnishments, out of service debt, bankruptcy
- Discretionary allotments e.g. savings accounts, support of dependents, insurance premiums, mortgages, to pay rents or fund investments
- Non-Discretionary allotments e.g. U.S. Savings Bonds, Privatized Housing Payments, Veterans Educational Assistance Program, Delinquent Travel Charge Card Debt
- Servicemember’s Group Life Insurance (SGLI)
- Family Servicemember’s Group Life Insurance (FSGLI)