2011 WHold Tax Changes Effects72, 21 Jan 2011
DFAS Customers affected by 2011 Tax Changes Indianapolis, January 04, 2011 - DFAS customers may be affected by recent changes to the tax law, tax tables and other legislation. Some of the changes include:
1. Reduction in Social Security tax withholding from 6.2% to 4.2% for 2011
2. Expiration of the Making Work Pay credit, which may increase the amount of wages subject to income tax withholding
3. 1.4% pay increase for Military service members
The amount of the changes in net pay will depend on several factors to include: Income level and W-4 elections
Military retirees and annuitants will see the changes reflected in their March 1 payment. Retirees can view the changes in myPay on 1 February and annuitants can view the changes in myPay on 18 February. Account statements with the new net pay amounts reflected will be mailed to all retirees and annuitants affected by the change in February.
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