Federal Taxes - Army
Federal TaxesU.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors1
Lesson Objectives Describe types of tax withholdings Outline eligibility requirements for tax deductions Describe wages not subject to withholding Federal Insurance Contributions Act Combat Zone Tax Exclusion (CZTE) Benefits of MyPayU.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors2
WithholdingsTypes of Withholdings Federal Income Tax Withholding (FITW) State Income Tax Withholding (SITW)Factors for Income Tax Withholdings IncomeMarital statusExemptionsAdditional amount withheldFITW calculation methods Wage bracket Percentage (manual computation)U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors3
Taxable amounts DoDFMR Vol 7A 4402All pays and some fringe benefitsExclusions Combat Zone Tax Exclusion Legal residents of Puerto Rico and Commonwealth ofNorthern Mariana IslandsInternal Revenue Service Publication 15, Circular E(Employer's Tax Guide)U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors4
Federal Insurance Contributions Act (FICA) TaxesSocialSecurity CY 2020 6.2%Base limit 137,700Medicare CY 2020 1.45%No cap on deductionsU.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors5
Combat Zone Tax Exclusion (CZTE) Service in a combat zone or qualified area(illness/wounds, captured by enemy, missing, leave) All enlisted member and warrant officers pay Officers: highest enlisted pay (based on SMA) plusHFP/IDP ( 225) In direct support of CZTE operations Area must be designated (land, sea, air) Tax exclusion does not apply when in CZTE area for mereconvenience (leave)U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors6
Calculating CZTE DoDFMR Vol 7A 440202A2Step 1 Identify taxable pay Basic pay, HFP, IDP, FLPP, etc.Step 2 Add IDP/HFP to SMA basic pay 225 8,578.50 (FY19) 8,803.50Step 3 Subtract Step 2 from Step 1U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors7
Calculating CZTE Cont.COL Wayne with 16 years of service was in AfghanistanFebruary 2019 receiving IDP and HDP-L.What amount of the pay was taxable?Step 1 Find Taxable Pay 9,586.80 (BP) 225 (IDP) 100 (HDP-L) 9,911.80Step 2 Add IDP / HFP to SMA Basic Pay 225 8,578.50 8,803.50Step 3 Subtract Step 2 from Step 1 9,911.80 - 8,803.50 1,108.308U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors8
Calculating CZTE Cont.LTC Banner has 18 years of service. In January 2019 hewas in Afghanistan receiving IDP and HDP-L.What amount of the pay was taxable?Step 1 Find Taxable Pay 8,998.50 (BP) 225 (IDP) 100 (HDP-L) 9,323.50Step 2 Add IDP / HFP to SMA Basic Pay 225 8,578.50 8,803.50Step 3 Subtract Step 2 from Step 1 9,323.50 - 8803.50 520.00U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors9
CZTE Leave DoDFMR Vol 7A 350202A2 Leave accrued in a combat zone or qualified hazardousduty area One day in an eligible location qualifies all leave in thatmonth to be CZTE leave CZTE leave days will be tax-exempt when used or sold First leave usedU.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors10
MyPayAllows members to Modify tax withholdings Adjust TSP contributions Access to Leave and Earnings Statements (LES) View Tax statements (W-2)U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors11
Check on Learning1. The Chapter of the DODFMR that covers IncomeTax Withholding is?2. The highest amount of CZTE pay an Army officercan be granted is up to the pay, plus HFP/IDP.3. is the system that a Soldier would use toget an electronic W-2.U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors12
Questions Comments Concerns U.S. Army Human Resources Command“Soldiers First”//UNCLASSIFIED// PED LEVEL 2POC: Military Pay Instructors13
Outline eligibility requirements for tax deductions Describe wages not subject to withholding Federal Insurance Contributions Act Combat Zone Tax Exclusion (CZTE) . Federal Income Tax Withholding (FITW) State Income Tax Withholding (SITW) Factors for I
1.iscover the three basic tax types—taxes on what you earn, taxes on D what you buy, and taxes on what you own. 2. Learn about 12 specific taxes, four within each main category—earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes; buy: sales taxes, gross receipts taxes, value-
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Taxes generate financial resources that governments us to provide public goods and redistribute income. Governments use five types of taxes: Income taxes Social security taxes Sales taxes Property taxes Excise tax Figure 9.5 shows the sources of tax revenues: Income taxes 51% (43%
Army Materiel Command (AMC) http://www.amc.army.mil/ AMCOM -Redstone Arsenal http://www.redstone.army.mil/ Association of the US Army (AUSA) http://www.ausa.org/ Army Center for Military History http://www.army.mil/cmh-pg/ Army Training Support Ctr http://www.atsc.army.mil/ CECOM http://www.monmouth.army.mil
The main taxes paid to the federal government are: 1. Personal income taxes 2. Corporate (business) taxes 3. Social security taxes 2.4 CIRCULAR FLOWS State and Local Governments The major expenditures are to provide: 1. Local goods and services 2. Welfare benefits The main taxes levied are: 1. Sales taxes 2. Property
The Zambian tax system broadly comprises income taxes, consumption taxes and trade taxes. These taxes are collected by the Zambia Revenue Authority (ZRA) which is the corporate body mandated to collect all taxes. Table 1: Broad tax categories in Zambia Tax category Type of tax Income taxes C
Ind. Income Taxes 1,698,353 13,180 49% Soc. Insurance Taxes 1,242,405 9,641 36% Corporate Taxes 216,194 1,678 6% Excise Taxes 98,669 766 3% Customs Duties/ Fees 69,469 539 2% Fed. Reserve Earning 48,783 379 1% Estate/Gift Taxes 19,295 150 1% Other Re
General Sales Taxes 190,500 Hospital Charges 92,600 Specific Excise Taxes 8,200 Transportation Charges 36,300 Income Taxes 40,200 Education Charges 37,700 License Taxes 6,900 Other Fees and Charges 113,200 Other Taxes 4,600 TOTAL FEES & CHARGES 1,847,000 TOTAL TAXES 305,500 TOTAL GENERAL REVENUE 2,152,500 7
