Are active-duty service members subject to FICA taxes?

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Prepare effectively for the Command Pay and Personnel Administrator (CPPA) Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each question. Enhance your readiness for this crucial examination.

Multiple Choice

Are active-duty service members subject to FICA taxes?

Explanation:
Active-duty military pay is exempt from FICA taxes, which are the Social Security and Medicare payroll taxes. The law specifically excludes wages paid to members of the uniformed services while they are in active service from Social Security and Medicare withholding. This means no FICA withholdings on basic pay, allowances, or most special pays while on active duty, regardless of where you are stationed. Federal income tax is a separate obligation, and if a service member has non-military civilian work, that outside job would still be subject to FICA.

Active-duty military pay is exempt from FICA taxes, which are the Social Security and Medicare payroll taxes. The law specifically excludes wages paid to members of the uniformed services while they are in active service from Social Security and Medicare withholding. This means no FICA withholdings on basic pay, allowances, or most special pays while on active duty, regardless of where you are stationed. Federal income tax is a separate obligation, and if a service member has non-military civilian work, that outside job would still be subject to FICA.

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