The mission of Personal Financial Management is to provide education, training, and counseling on financial matters in order to increase personal, family, and operational readiness. Money is one of the main reasons service members experience stress on the job and its one of the top things couples fight about. We believe that by helping individuals achieve financial success we can foster confidence in facing their finances and alleviate these stressors. A solid understanding of a Marine’s personal financial situation and prospects will give them and their family a better chance of achieving financial success during their career and prior to transitioning. It will build confidence in facing financial challenges and responsibilities.

The Personal Financial Management Program is designed to assist commanders in helping Marines and family members learn and improve basic financial management skills, become more informed consumers, develop and maintain credit worthiness, understand the importance of savings and investment, and reduce or maintain levels of manageable debt. We are program specialists, credentialed as Accredited Financial Counselors, who provide personal and family financial education, information, and counseling with the objective of facilitating mission readiness through improved personal readiness.

Education, training, and one-on-one coaching is available for many financial topics from budgeting/diversifying your income, credit and debt management, military/consumer protections, car buying, home options, savings and investing, financial planning for future events, clearance issues related to personal finances, financially fit children, and other financial topics.

Learn to take financial stress off, save for your children’s education, improve your personal and professional mission readiness, and reach that goal of transitioning/retiring comfortably by attending the variety of financial course/workshops/briefs we offer.

Repayment of 2020 Social Security Taxes
Support information regarding 2020 Social Security taxes not paid from Sep–Dec 2020. Taxes will be collected in 24 installments (January 1 – December 30, 2021) from mid-month and end-of-month pay. People will have automatic payroll deductions for repayment of 2020 Social Security Taxes

Additional information:
https://www.dfas.mil/taxes/Social-Security-Deferral/
https://www.marines.mil/News/Messages/Messages-Display/Article/2479857/collection-of-2020-social-security-tax-deferral

Filing Your Taxes on Base
Service members and eligible patrons in need of free tax filing services by VITA (Volunteer Income Tax Assistance) Office.
Mon–Fri: 8:30am-3pm | BLDG 2264, 9th St. & Vandegrift Rd.

Additional information:
https://www.pendleton.marines.mil/Services/Income-Tax-Assistance/

Filing Your Taxes via Military 1 Source
Service members and eligible patrons needing tax preparation and e-filing software available by Military 1 Source.
Military 1 Source offers support from Jan 19 through mid-Oct online.
https://www.militaryonesource.mil/financial-legal/tax-resource-center/miltax-military-tax-services/

WHO: Employees/Service Members who made less than $4,000 in a two-week period before taxes or $104,000 annually, whose 2020 Social Security Taxes were deferred.

WHAT: At the end of December, the 2020 Social Security tax deferral ended. Beginning January 2021, the normal 6.2% Social Security tax withholdings will again be deducted and you will also see an additional deduction for the deferred 2020 Social Security tax collection taken from your pay.

Collection Process:
Per IRS guidance (as modified by the Consolidated Appropriations Act, 2021), the Social Security taxes deferred in 2020 will be collected from pay between January 1 and December 31, 2021.

Military Members –

  • For active duty military members, the 2020 deferred Social Security taxes will be collected in 24 installments, from your mid-month and end-of-month pay between January 1 and December 30, 2021.
  • For reservists and guardsmen performing intermittent duty in 2021, the amount collected may not be the same every pay period. DFAS will collect 2% of net available from each weekly, mid-month and end-of-month pay, and will continue until the deferred taxes have been repaid in full.
  • Beginning in January 2021, your myPay LES will reflect the monthly collection amount and contain a note in the remarks section that shows the remaining balance of deferred Social Security taxes.

Civilian Employees –

  • The amount of Social Security taxes deferred in 2020 will be collected in 24 installments between pay-periods ending January 16 and December 4, 2021.
  • Beginning in January 2021, your myPay LES Remarks section will include the 2020 deferred OASDI collection amount in that pay period, as well as the remaining balance to be collected.
  • If you separate or retire prior to the deferred Social Security tax being collected in full the unpaid balance will either be collected from your final pay or you may receive a debt letter with instructions for repayment.

WHEN: Automatic collection will begin January 2021 through December 2021.

WHERE: There is no action on your part, the collection will be automatic and you will be able to see the amount on your Leave and Earning Statements.

WHY: Pursuant to IRS Notice 2020-65 and at the direction of the Office of Management and Budget and Office of Personnel Management, Social Security (Old Age, Survivors, and Disability Insurance) or “OASDI” tax withholdings were temporarily deferred from September through December 2020 and will be collected from wages paid between January 1, 2021 and December 31, 2021, for employees who had wages subject to OASDI of less than $4,000 in any given pay period. These actions were in response to the Presidential Memorandum issued on August 8, 2020.

If you have any questions, please reach out to your Chain of Command, Human Resources, or one of the MCCS Personal Finance Managers at (760) 829-0175 | (760) 829-0245 | (760) 829-0105 or email cppfm@usmc.mil.

Thrift Savings Plan (TSP) What is it?
TSP is a retirement savings and investment plan for Federal employees and members of the Uniformed Services.

  • Established in 1986
  • Opened to Military in 2000
  • Offers similar savings and tax benefits as 401(k) plans
  • One of the largest defined contribution plans in the world
  • Administered by the Federal Retirement Thrift Investment Board (FRTIB)
  • Defined Contribution Plan

TSP Advantages

  • Contributions to the TSP are yours no matter how long you serve
  • Automatic payroll deductions
  • A diversified choice of investment options
  • A choice of tax treatments for your contributions
  • Low expenses
  • If in Blended Retirement System (BRS), you receive contributions from your Service
  • In certain circumstances, you can access your money while still a member of the Uniformed Services
    Variety of withdrawal options

Types of TSP Plans

  • Matching contributions for those in the Blended Retirement System (BRS)
  • A major difference between the “High-3” or legacy retirement system and the new BRS is that the new blended system requires a traditional TSP account for
  • Service Members where the Government will contribute to the account along with the member.
  • If your DIEMS date is on or after 1 January 2019, a traditional TSP account was automatically set up for you.
  • All agency contributions go to a traditional TSP account, but your contributions can go to a traditional TSP account, a Roth TSP account or a combination of both.

Learn More about the TSP
Useful educational websites include:

By Phone: TSP ThriftLine  1-877-968-3778

Repayment of 2020 Social Security Taxes
Support information regarding 2020 Social Security taxes not paid from Sep–Dec 2020. Taxes will be collected in 24 installments (January 1 – December 30, 2021) from mid-month and end-of-month pay. People will have automatic payroll deductions for repayment of 2020 Social Security Taxes

Additional information:
https://www.dfas.mil/taxes/Social-Security-Deferral/
https://www.marines.mil/News/Messages/Messages-Display/Article/2479857/collection-of-2020-social-security-tax-deferral

Filing Your Taxes on Base
Service members and eligible patrons in need of free tax filing services by VITA (Volunteer Income Tax Assistance) Office.
Mon–Fri: 8:30am-3pm | BLDG 2264, 9th St. & Vandegrift Rd.

Additional information:
https://www.pendleton.marines.mil/Services/Income-Tax-Assistance/

Filing Your Taxes via Military 1 Source
Service members and eligible patrons needing tax preparation and e-filing software available by Military 1 Source.
Military 1 Source offers support from Jan 19 through mid-Oct online.
https://www.militaryonesource.mil/financial-legal/tax-resource-center/miltax-military-tax-services/

Please see the below information IRT Tax withholding. Review attachments to help better communicate the message. Your Command Financial Specialist (CFS) can reach out to our Personal Finance Management (PFM) Specialist (if needed) to gain clarity so that they can get the word out to your individual units. Our PFMs stand at the ready to provide clarity. Please look out for more information to be pushed out via DFAS/MOL.

President Trump Memo deferring the withholding of all eligible employees’ 6.2% OASDI

We recently received an email informing us of that on Aug 8th, 2020, the President signed a memorandum pertaining to a payroll tax deferral.

Payroll taxes are federal, state, and local taxes withheld from an employee’s paycheck by the employer. These taxes consist of income taxes, unemployment taxes, and deductions for (FICA) Social Security and Medicare taxes.

Federal Insurance Contributions Act (FICA) consists of current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Combined, the FICA tax rate is 15.3% of the employees’ wages.

What
Specifically, the temporary change will defer the withholding of all eligible employees’ 6.2% OASDI. Those with wages in excess of $4,000 are not impacted by this tax deferral. When implemented the 6.2% OASDI deferral will be effective until 31 Dec. 2020.

Who
The deferrals will apply to all federal employees making less than $104,000 per year, or $4,000 per pay period. Simply stated…this is a short-term loan that will need to be repaid in full, and not an increase in take-home pay. In the short term, you may see an increase in take-home pay, but unless Congress pass COVID-19 legislation to forgive the payroll taxes that is due, you will likely will be expected to pay that money back some time next year in 2021…for tax year 2020. (Ouch!) I am quite sure you will be getting calls from sales people soon with “Payroll Taxes Saving Strategies and Scams.” Take heed and extreme caution.

Meanwhile here’s a simple effective idea that will help…
I would suggest everyone use the IRS user-friendly withholding calculator to compute the dollar amount of your personal withholding. (Don’t worry; it is handy enough to compute what you will owe from now until the end of the year).

Set aside that amount each pay period in a separate saving account at your bank or credit union to pay back your taxes. You can keep the interest earned! Otherwise by some estimates, you will have to double your regular payroll tax rate during the first four months of 2021, and it is possible that if you do not do so, you will have to pay interest and penalties on amounts still owed if they’re not paid back the tax due date.

Your Temporary Spendable Increase-Payroll Tax Deferral
Easy Ways to Arrive at Temporary Spendable Increase

The mission of Personal Financial Management is to provide education, training, and counseling on financial matters in order to increase personal, family, and operational readiness. Money is one of the main reasons service members experience stress on the job and its one of the top things couples fight about. We believe that by helping individuals achieve financial success we can foster confidence in facing their finances and alleviate these stressors. A solid understanding of a Marine’s personal financial situation and prospects will give them and their family a better chance of achieving financial success during their career and prior to transitioning. It will build confidence in facing financial challenges and responsibilities.

The Personal Financial Management Program is designed to assist commanders in helping Marines and family members learn and improve basic financial management skills, become more informed consumers, develop and maintain credit worthiness, understand the importance of savings and investment, and reduce or maintain levels of manageable debt. We are program specialists, credentialed as Accredited Financial Counselors, who provide personal and family financial education, information, and counseling with the objective of facilitating mission readiness through improved personal readiness.

Education, training, and one-on-one coaching is available for many financial topics from budgeting/diversifying your income, credit and debt management, military/consumer protections, car buying, home options, savings and investing, financial planning for future events, clearance issues related to personal finances, financially fit children, and other financial topics.

Learn to take financial stress off, save for your children’s education, improve your personal and professional mission readiness, and reach that goal of transitioning/retiring comfortably by attending the variety of financial course/workshops/briefs we offer.

McTureous Hall

Bldg. 218

Mon/Fri 7:30am – 4:30pm

For assistance contact:
Sandra Little
(760) 829-0105
sandra.little@usmc.mil

MCCS Barstow