What is reservist differential pay?
What is reservist differential pay?
What is a reservist differential? A payment made to eligible Federal civilian employees who are members of the Reserve or National Guard during periods when they are called or ordered to active duty under certain specified provisions of law.
Is military differential pay mandatory?
Although they are not required to do so, employers may provide supplemental or differential income. Differential wage payments made to an individual on active duty for more than 30 days are subject to income tax withholding, but not to Social Security and Medicare (FICA) or unemployment tax (FUTA).
How is military differential pay calculated?
Subtracting the difference in military pay (excluding pay received while assigned to a combat zone, hardship duty pay, and family separation pay) from state pay for each month. Example: State pay is $2,723. Military pay is $2,000. The difference is $723.
What is military differential pay?
Q: What is military differential pay? Differential pay is any payment made by an employer to an employee when they are performing active duty for more than 30 days. It represents all or a portion of the wages the individual would have received from the employer if the individual were employed as normal.
What is military reserve pay offset?
Federal agencies must provide a payment—a “reservist differential”—equal to the amount by which an employee’s projected civilian “basic pay” for a covered pay period exceeds the employee’s actual military “pay and allowances” allocable to that pay period.
Do reservists get holiday pay?
Reservists do not accrue statutory annual leave with their employer during mobilisation. The reservist will accrue annual leave with the Ministry of Defence while they are mobilised and will be able to take this annual leave before the last day of the period of military service.
When do you have to pay reservist differential pay?
Under 5 U.S.C. 5538, employing agencies must pay differential payments to eligible Federal civilian employees who are members of the Reserve or National Guard (hereafter referred to as “reservists”) called or ordered to active duty under certain specified provisions of law.
How is differential pay calculated for the military?
For each affected month, a daily rate will be computed by dividing the monthly total by 30 days for full months or by the actual number of days for partial months. Military pay and allowances will be allocated to a civilian pay period (usually a 2-week period) based on the applicable daily rate for days within the pay period.
When are reservist differentials not subject to FICA?
* Reservist differentials are not subject to FICA (Social Security and Medicare) taxes if those differential payments are paid for periods of active duty of more than 30 days. * Reservist differentials are subject to FICA taxes if those differential payments are paid for periods of active duty of 30 days or less.
Is the United States postal service paying for FERS?
The United States Postal Service recently announced that it will immediately suspend payment of the employer portion of the contributions for all Federal Employee Retirement System (FERS) retirements.