DoDFMR Vol 8: Civilian Pay

Questions and Answers

Which allowance is applicable regardless of location?

Living Quarters

Temporary Quarters Subsistence

Official Residence

Physicians Comparability (correct)

Which allowance is NOT applicable in certain states or cities?

Non-foreign Cost-of-Living (correct)

Separation Incentive Pay

Remote Site

Danger Pay

Which of the following payments is designed for recruitment efforts?

Retention Incentives (correct)

Representational Benefits

Separation Incentive Pay

Remote Site

Which two allowances are consistently applicable across multiple scenarios?

Separation Incentive Pay and Danger Pay Signup and view all the answers

Which allowance has the potential variability based on local taxation?

Non-foreign Cost-of-Living Signup and view all the answers

Which category of allowances is indicated as applicable in all circumstances?

Recruitment, Relocation, and Retention Incentives Signup and view all the answers

What is the primary purpose of the 'Mandatory Deductions' chapter?

To detail mandatory deductions from pay. Signup and view all the answers

Which section addresses the 'Order of Precedence' for deductions?

Order of Precedence (0403) Signup and view all the answers

What are the CSRS and FERS systems associated with?

Retirement deductions and benefits. Signup and view all the answers

Which section covers Federal Income Tax Withholding?

Section 6.0 Signup and view all the answers

What does the section 'STATE INCOME TAX WITHHOLDING (SITW)' cover?

Withholding authorities and responsibilities at the state level. Signup and view all the answers

Which table in the chapter outlines mandatory deductions for civilian pay?

Table 4-1 Signup and view all the answers

What is the focus of the section '6.6 Retained Copies of Form 941 and Related Reports'?

Recordkeeping for tax forms. Signup and view all the answers

Which section includes information about exemptions from federal withholding?

6.5 Exemption From Withholding Signup and view all the answers

What topics are covered under 'Retirement Deductions'?

Various retirement systems and their administration. Signup and view all the answers

Which table lists FICA percent rates from 1994 to 2022?

Table 4-2 Signup and view all the answers

What is required for employees to elect to retain retirement coverage when moving from a losing employment system?

They must be vested in the losing employment system’s retirement plan. Signup and view all the answers

Which of the following statements is true about the retirement election provisions after moving to APF positions?

A break in service of up to 1 year is allowed for retirement coverage retention. Signup and view all the answers

What was the election deadline for combining FERS and NAF service credit for moves occurring before August 10, 1996?

August 11, 1997 Signup and view all the answers

What does section 1131 permit for employees moving between NAF and APF positions after December 28, 2001?

Continuing coverage in their previous retirement plan regardless of vesting. Signup and view all the answers

Which of the following statements about retirement coverage after qualifying moves from NAF positions is correct?

Specific requirements must be met to retain NAF retirement coverage after moving. Signup and view all the answers

What is a requirement under section 1132 for employees utilizing prior NAF service?

They must have recent service in a CSRS or FERS covered position. Signup and view all the answers

When was the law expanded to grant retirement coverage opportunities for moves to APF positions outside of DoD?

August 10, 1996 Signup and view all the answers

Which section specifies that prior NAF service does not increase CSRS or FERS annuity benefits?

Section 1132 Signup and view all the answers

What governs the withholding for an employee who is in continual travel status?

The employee's duty station Signup and view all the answers

In cases where an employee performs duties outside their official duty station, how is the withholding location determined?

By where the employee regularly performs his or her duties Signup and view all the answers

What should a PRO do in disputed tax withholding cases?

Withhold tax and advise the employee to negotiate directly Signup and view all the answers

What is the requirement for nonresident employees regarding state income tax withholding when allocating their compensation?

They are subject to withholding on their entire compensation if allocating less than three-fourths Signup and view all the answers

What must nonresident employees provide to discontinue state income tax withholding when allowed?

A signed statement certifying non-subject compensation Signup and view all the answers

Which deduction strategy should be used when an employee is subject to withholding in multiple states?

Use separate deduction codes for each state Signup and view all the answers

Which of the following is true regarding employees assigned to duty stations in states with reciprocal agreements?

Their withholding is adjusted automatically based on the location of their duty station Signup and view all the answers

What happens if an employee does not comply with the state's requirement for tax withholding?

The employee will be responsible for unpaid taxes and penalties Signup and view all the answers

What are mandatory payroll deductions primarily determined by?

Federal law and the United States Code Signup and view all the answers

Which of the following is NOT considered a mandatory payroll deduction?

Voluntary employee retirement savings Signup and view all the answers

Mandatory payroll deductions include which of the following items?

Medicare and child support Signup and view all the answers

What is required for voluntary deductions to be taken from an employee's pay?

A written authorization from the employee Signup and view all the answers

Which of the following best defines mandatory payroll deductions?

Deductions required by law, regulation, or court order Signup and view all the answers

Which chapter provides policies regarding mandatory payroll deductions for DoD employees?

Chapter 4 Signup and view all the answers

What type of deductions are not classified as mandatory deductions?

Long-term disability insurance premiums processed by the employer Signup and view all the answers

Which of the following would be considered a mandatory deduction under the provided policies?

Old Age, Survivors and Disability Insurance (OASDI) Signup and view all the answers

Study Notes

DoD Financial Management Regulation Overview

Covers mandatory payroll deductions for Department of Defense (DoD) employees.
Established regulations and policies set forth requirements relevant to employee pay deductions.

Mandatory Deductions

Include federal/state income tax, OASDI (Old Age, Survivors, and Disability Insurance), Medicare, and court-ordered deductions.
Employees must authorize voluntary deductions with written consent.

Retirement Deductions

Employees may retain retirement coverage during transfers between DoD and Nonappropriated Fund (NAF) positions, provided specific conditions are met.
Breaks in service should not exceed one year for retirement plan retention.
Eligible employees can combine service credits if transfers occurred between 1966 and 1996.

Federal Insurance Contributions Act (FICA) Tax

FICA tax rates for Social Security and Medicare are specified, with rates tracked from 1994 to 2022.
Calculation of withholding takes into account employee compensation subject to FICA.

Federal Income Tax Withholding (FITW)

Employees must complete IRS Form W-4 to set withholding status at employment start or upon changes.
Withholding exemptions are available depending on eligibility.

State Income Tax Withholding (SITW)

Withholding based on the employee's duty station, with specific provisions for nonresident employees.
Certain states allow nonresidents to certify compensation exempt from state income tax.

City and Local Income Tax Withholding

Local income tax requirements vary by jurisdiction, impacting withholding practices significantly.
Employees' written requests and duty locations guide withholding decisions.

Order of Precedence

Protocol exists for the processing of mandatory and voluntary deductions to ensure compliance and accuracy.

Additional Considerations

Comprehensive details and variations based on specific states and local taxing authorities are critical for compliance.
Updates and revisions ensure guidance is current through established sections and reference documents.

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Description

This quiz focuses on the revisions made to the Financial Management Regulation, particularly in Volume 8, Chapter 4. You'll explore the updates from CY 1963-1993, changes made to historical tables, and the latest revisions through CY 2022. Enhance your understanding of the essential financial management concepts in this context.