6F Mod 1 Military and Civilian Pay PDF

6F051-O: Module 1, Military and Civilian Pay C O NT I NU E Lesson 1: Military Pay and Entitlements C O NT I NU E Master Military Pay Account (MMPA) Assignment to the Financial Operations section will require Airmen to answer customer inquiries. To accurately accomplish this, Airmen will need to master the art of interpreting the Master Military Pay Account (MMPA) records. As you continue in your career, your knowledge of the MMPA will continue to grow as Airmen are subjected to unique scenarios. In this objective we'll determine the procedures used to interpret an MMPA and provide some screen shots to help you along the way. C O NT I NU E Master Military Pay Account (MMPA) The central-site computer, located at the Defense Finance and Accounting Service- Indianapolis, maintains a master file for each Air Force member's pay account. DFAS-IN calls these accounts master military pay accounts or MMPAs. To log into the Defense Joint Military Pay System (DJMS), access the Multi-Host 1 Internet Access Portal (MIAP) website at miap.csd.disa.mil. Click 'Launch HA Cloud'. Then, click 'Mech Model 5'. Once inside of DJMS, type 'KLS' into the Logon field. Press the Enter key. 2 Log in to the system with the User ID and password that is provided by your unit's 3 Terminal Area Security Officer (TASO). Press the Enter key. 4 On the Main Menu, place an 's' on the 'DJMS Air Force' option. Press Enter twice. This brings up the screen that allows you to enter various DJMS commands. To view MMPA records, enter 'JJAA'. What is an MMPA? An MMPA is a Master Military Pay Account that shows an individual members pay record. The MMPA is a view only module that is accessed through Defense Joint Military Pay System (DJMS). The MMPA contains data for: Entitlements, Allotments, Payments, Leave, Deductions, Collections, and Statuses. The MMPA is accessed via members logging into DJMS via the MIAP portal. Members will utilize command JJAA to access member MMPAs for current month plus previous 11 months for active changes and 4 years plus 11 months for view only capability. Every MMPA will contain a header which consists of 3 lines: PERSONAL DATA – PRIVACY ACT OF 1974 – CURRENT MMPA AS OF XX/XX/XX 123456789 NAMES 35 E 07 MJ: LB: 3800 LC: 4100 SA: A SX: 1 TK: 040620 TU: 170916 TH: 170916 Line 1 contains the privacy act statement and MMPA as of date (YY/MM/DD). Line 2 contains SSN, Name ID (first 5 letters of last name), Grade (3_ for enlisted/0_ for officer), and type of request. Line 3 contains MMPA month, AFPC match flag code, Paying ADSN (DFAS), Servicing ADSN (your base), Current status (A = on station, B = on leave, etc), number of open statuses, Pay Date (date entered the AF), Date of Separation (date member would separate, includes any extensions), and expiration term of service (date enlistment contract ends). MMPAs display the Format Identifier (FID) entered by the technician. FIDs are found in AFMAN 65-116, Vol. 1, Attachment 19. FIDs are a 2 character code, Alpha, numeric, or both (i.e. PU/33/R7), the first character identifies a category and the second character identifies a specific entry. FIDs will either be an open entry or a closed entry. Open entries are characterized by an open space after the FID meaning an active entitlement, entry open data when the last change occurred, and start/effective date. Closed entries are characterized by a dash “-“ after the FID meaning a stopped/cancelled entitlement and it includes the entry open and closed date. FIDs can be accessed through three types of requests: FID request Group/Category request Table request FID requests are 2 characters, information is only applicable to one entitlement, and the least amount of information Group/Category requests show related entitlements with a one character entry “D” = deductions, “A” = allotments, “E” = entitlements, “F” = Taxes which are listed in AFMAN 65- 116, Vol. 1, Ch. 5 Table requests use a “T” plus a table number for 3 total characters (i.e. T21) pre-established block of information by DFAS. 01-BP* ENTRY-OPEN-DT 141002 06 10 1 ENTRY-CLSD-DT 150101 99 01 1 CNTRL-CODE 2 ACTN Z4 START 140912 STOP 141231 ENTLMT-MM 0.00 ENTLMT 0.00 Entry open data (EOD) and entry closed data (ECD) 141002 – Processing Date 06 – Update/Cycle # at DFAS 10 – Process month at DFAS 1 – MM flag indicator (Effective prior to mid-month pay is “1” and after mid-month pay is “2” C O NT I NU E Compute Basic Pay Basic pay for military personnel is determined by laws enacted by Congress, with rates varying based on rank and the total number of years served. Circumstances including non-pay statuses and excess leave can impact entitlement to basic pay. Also, specific duty positions like the Air Force Chief of Staff or Chief Master Sergeant of the Air Force play a role in determining an individual's basic pay. These factors collectively contribute to the calculation of basic pay for military personnel. The responsibility for updating base pay rates lies with the Air Force Personnel Center (AFPC) and the Military Personnel Flight (MPF). These updates are typically entered into the Military Personnel Data System (MilPDS) and subsequently interfaces with the Defense Joint Military Pay System (DJMS). When in the MMPA, the Format Identifier (FID) "01" will show you a member's basic pay line. The military basic pay charts are always available for reference on the DFAS website. Ensuring you're working with the correct amounts of basic pay, based on the applicable year's pay table, will be critical when computing this entitlement. To begin calculating pay, understand that military pay entitlements are calculated using a 30- day month regardless of the actual number of days in that month. Keep in mind that promotions will be effective on the first day of the promotion month (unless otherwise specified). See the Department of the Air Force Instruction 36-2502 for more information. The computation process involves several key steps. Introduction Here are the steps for computing basic pay. Step 1 Determine the monthly basic pay rate based on the individual's rank and cumulative years of service in the military. The base pay rate for an E6 with less than two years of service is $2,980.50. Step 2 Divide the monthly rate by 30 to establish the daily pay rate. The daily rate of base pay is $99.35. Step 3 Multiply the daily rate by the number of days the individual has served. The TSgt is entitled to $1,688.95 for the 17 days of the month that he served. Summary This method ensures a consistent and fair approach to calculating pay for military personnel, maintaining uniformity across different service periods. C O NT I NU E Let’s explore an example of computing base pay. A member (E-2) enters active duty on 11 March. How many days of basic pay are they entitled to? How much money are they entitled to for end-of-month (EOM) March? Answer: 30-day month minus 10 days not served is 20 days of entitlement. The E-2 monthly rate is $1,884. $1,884 ÷30 days = $62.80 daily rate $62.80 x 20 days = $1,256 March entitlement Always make sure you're using the correct year's basic pay chart. Order the steps for computing a member's basic pay entitlement amount. Determine monthly rate Step 1 according to pay chart Determine the daily rate of Step 2 entitlement Step 3 Multiply daily rate by days SUBMIT DFAS Pay Tables When using the 2023 DFAS Basic Pay Chart, you can select the “PDF version” of the table for download or select “Enlisted Members” to view the table. DFAS PAY TABLES C O NT I NU E Scenario An A1C over three years promotes to E-4 on 18 March 2019. What will the member’s EOM March basic pay entitlement be? Answer: 1 E-3 over 3 yrs = $2,233 ÷30 days = $74.43 daily $74.43 x 17 days = $1,265.31 2 E-4 over 3 yrs = $2,431.80 ÷30 days = $81.06 daily 3 4 $81.06 x 13 days = $1,053.78 $1,265.31 (E3 entitlement) + $1,053.78 (E4 entitlement) = $2,319.09 EOM entitlement C O NT I NU E Deployed Entitlements Hostile Fire and Imminent Danger Pay There will be times when members are subjected to imminent danger in the line of duty. When Airmen are put in this situation, the Air Force recognizes the risk and offers monetary compensation called hostile fire pay. As stated in Chapter 10 of the DoD FMR Vol 7A, Hostile Fire Pay (HFP) is paid when certified by appropriate commanders to military members who are: Subjected to hostile fire or explosion of hostile mines. On duty in an area in close proximity to a hostile fire incident and the member is in danger of being exposed to the same dangers actually experienced by other Service members subjected to hostile fire or explosion of hostile mines. Killed, injured, or wounded by hostile fire, explosion of hostile mines, or any other hostile action. Members who are authorized HFP are eligible to receive non-prorated HFP in the full monthly amount of $225. Members are eligible for imminent danger pay (IDP) when serving on official duty within a designated IDP area. This includes members permanently assigned or Temporary Duty (TDY) to such areas. The National Defense Authorization Act modified IDP payments, limiting eligibility to only the actual days served in a qualifying area. Service members will now receive $7.50 for each day they are on official duty in an IDP area up to the maximum monthly rate of $225. The full monthly rate of IDP is only paid to members who serve an entire calendar month in an IDP area regardless of the number of individual days in that month. *As always, rates may change over the years so make sure to check the DoD FMR Vol 7A for current rates. A member must be entitled to basic pay in order to receive HFP or IDP. When a member loses entitlement to basic pay for a part of a month, the entitlements are prorated for the number of days of basic pay. A member who is absent from the designated area for an entire month (leave, TDY, etc.) is not entitled to HFP for that month. Members can be paid either HFP or IDP, but not both entitlements in the same month. Alright, so let's move forward with how to process HFP and IDP. C O NT I NU E The maximum IDP allowance is $220. True False SUBMIT Complete the content above before moving on. The first step is ensuring you have the proper supporting documentation to support the payment. Travel orders/authorization will always be a required document since it is considered to be proof of entitlement. Report HFP using a DAF Form 1881, Hostile Fire Pay Certification and MPO, and DD Form 114, Military Pay Order as your supporting documents along with travel orders. When an DAF Form 1881 is not available, DD Form 114 may be substituted if it includes all pertinent information contained on the DAF Form 1881 including: Social Security Number (SSN), name, grade, organization, qualified inclusive period (From/To) description, location, time and date of incident, and certifying official's name, position, grade, signature and date. Unit or Air Crew Commanders must authorize the entitlement to HFP, based on knowledge of a specific incident. Do not include or attach classified or sensitive information to the substantiating or supporting documents.                   DoD ID List the DoD Identification numbers (located on the back of the member's ID card) for all eligible members. This information is used to input the member's entitlement into Defense MilPay Office (DMO), which flows to DJMS.  Name List the full name (Last, First) of each member qualified for hostile fire pay.  Grade List the corresponding grade of each member.  Organization List the corresponding organization of each member.  Rule No. Under Which Qualified Refer to the Department of Defense Financial Management Regulation (DoDFMR) to find the corresponding rule the members fall under.  Months Qualified Identify the months of hostile fire pay the member(s) are eligible for (e.g., Jan 2023-Feb 2023).  Incident Occurred The hostile fire pay location in which the incident occurred.  Time Time in which the incident occurred.  Date (of Incident) This is the date that the hostile fire incident occurred on.  Describe the Circumstances Surrounding the Incident It is vital that this section is detailed to the best of the Aircraft Commander's/Commander's (AC's/CC's) ability. When completing this section, always think of the 5 W's: Who, What, When, Where, and Why?  Name and Grade of Unit Commander Printed name and grad of the unit commander. This may also be the Aircraft Commander in instances when members are not deployed, but are operating in a hostile environment (Aircrew).  Commander Signiture This should be the signature of the individual in the previous block.  Organization and Station Organization and station of the commander.  Date The date the commander is signing.  ADSN This is the ADSN of the finance office processing the entitlement.  Name and Grade of Certifying Officer Printed name and grade of the certifying officer.  Certifying Officer Signature The signature of the individual in the previous block. C O NT I NU E We learned about FIDs in the MMPA lesson, but each FID needs to be accompanied by an action indicator (or AI). The AI tells the system what action to take on the FID. Attachment 18 in the Air Force Manual (AFMAN) 65-116 Vol 1 provides a description of all action indicators. 01 Start 02 Stop Report 03 Change 04 05 Correct 06 Cancel Increase (Allotments Only) 07 Decrease (Allotments Only) 08 An easy phrase to help you remember the order is: Santa saw Rudolph chewing cotton candy in December. C O NT I NU E HFP is FID "23" on the MMPA, so in order to report HFP, you'll need to process a 2303 which credits the member with a one-time entitlement to HFP and is used only with inclusive dates. To correct HFP, process a FID/AI 2305 which corrects an error in a previous transaction. To cancel HFP, process a FID/AI 2306 which cancels entitlement to HFP previously submitted. IDP: The supporting documentation for IDP is the travel order/authorization and a DD Form 1351-2, Travel Voucher or Sub Voucher. This voucher will help you determine the inclusive period of the entitlement. The order/authorization should reference a duty location in a designated area that is listed as an IDP location in the DoD FMR Vol 7A, Chapter 10. A member's entitlement to IDP ends effective the date of departure from the designated location. Remember, this is a prorated entitlement. Members performing duty in Guantanamo Bay me be entitled to IDP if they are certified as performing duty "behind the wire". The certification memo and/or an email from AFAFO-F are used as substantiating documentation for the entitlement. The FID for IDP is also "23" on the MMPA, which is why the two entitlements are commonly assumed to be the same. To start IDP process a 2301 which establishes entitlement for an indefinite period. Although most deployed locations will start a member's IDP, it can be started by the permanent duty station (PDS). You would use the member's orders/authorization along with a DD Form 114 to start the entitlement effective the date the member is due to arrive in the designated area. This date is likely to change which can cause pay issues later which is why the deployed locations initiating the process is preferred. A 2305 can be done to correct dates if needed. If a traveler has completed their TDY and never received IDP and was authorized it, then a 2303 would be processed with the inclusive dates for the applicable location. If IDP was posted and needs to be stopped, process a 2302 based on the date they departed the eligible area. Pro-Tip: Most deployment vouchers are accomplished using Defense Travel System (DTS) and the Financial Operations Flight is typically the approving authority on these settlement vouchers. While reviewing the voucher for payment, the technician should also code up the IDP transactions using a DD Form 114 and print out the necessary supporting documentation. DTS also has an management information systems (MIS) report that must be pulled and should be used to capture any deployed entitlements that were missed previously. The MIS is a safety net and should not be the only means used to address deployed entitlements. NOTE: If 2302 or 2303 transactions ae received with a stop date in the current processing month, the transaction appears in section 8 of the Daily Transaction Record and process on the first calendar day of the following month. Scenario MSgt Magruder recently returned from a deployment and would like to know why she was never paid IDP. She asked multiple people at her deployed location and they all agreed that she should have been receiving it. Now she's back from deployment and has filed her settlement voucher but still does not see the IDP on her leave and earnings statement (LES). Step 1 – You review her travel order/authorization and travel voucher. The deployment location shows Kuwait. Step 2 – You review the DoD FMR Vol 7A, Chap 10 to validate what is authorized (See below) Step 2 – Step 3 – Explain to MSgt Magruder that Kuwait's IDP entitlement stopped effective 31 May 2014. Unfortunately, she was not entitled to any IDP while deployed to that location. She apologizes for her behavior and thanks you for your time. C O NT I NU E Hardship Duty Pay There are two types of Hardship Duty Pay (HDP): Hardship Duty Pay Location (HDP-L) and Hardship Duty Pay Mission (HDP-M). Both types are payable to both enlisted members and officers and is limited to no more than $300 in any one month. The DoD FMR Vol 7A, Chapter 17 provides specific locations and applicable rates and should always be referenced when processing the entitlement. Paid based on location in the HDP Location orders for the duration of the assignment. Paid at the rate of $150 and is based on the mission the member is HDP Mission performing. The qualifying missions are specified in the DoD 7000.14-R, Volume 7A, Chapter 17. When processing HDP you'll use FID 14. Process a 1401 to start the entitlement once the member has been in country for more than 30 calendar days. Process a 1402 to stop the entitlement effective the date they departed the qualifying area. The location code will determine the amount to be paid to the member. If the member never received the entitlement and was authorized it then a 1403 would be processed using the inclusive dates. Correction and cancellation of an existing entitlement follows the same processing rules as previously mentioned for HFP and IDP. When a member is in receipt of IDP or HFP, then the maximum amount of HDP-L is $100. The total entitlement of HDP-L plus HFP or IDP in any 1 month may not exceed $325. Select all the true statements about HDP. DoDFMR Vol 7A, Ch. 17 lists HDP locations and rates The FID for HDP is 23 The maximum allowed HDP-L plus HFP or IDP $325 Processing a 1402 stops current HDP entitlement on the pay record SUBMIT C O NT I NU E Combat Zone Tax Exclusion (CZTE)/Qualified Hazardous Duty Area (QHDA) Entitlements Combat zone/combat zone tax exclusion: A combat zone (CZ) is any area designated by Executive Order as an area Armed Forces of the US are, or have engaged in combat. The DoD FMR Vol 7A lists the areas currently designated as combat zones. DJMS Table 074 contains the amounts applicable for each year. Entitlement to CZTE means the member is not required to pay federal or state income tax while serving in a designated combat zone. If duty is in a combat zone, the entitlement is automatic; no entitlement to HFP or IDP has to exist. Officers are authorized CZTE for a qualifying month that cannot exceed the sum of the highest rate of the basic pay of the Chief Master Sergeant of the Air Force plus the rate of any HFP/IDP earned in the qualifying month. Qualified hazardous duty area: A QHDA is a military contingency operation area designated by public law to receive the same tax benefits as a CZ, with one major difference: for a QHDA to be eligible for CZTE, the QHDA must be designated as an area entitled to HFP/IDP. DoD FMR Vol 7A, provides the areas currently designated to receive HFP/IDP entitlements. The tax exclusion can be stopped if the member is not serving in a combat zone. However, the member must meet the following requirements: 1. Serve in direct support of a QHDA. Service is in direct support of military operations in a CZ or QHDA if it has the effect of maintaining, upholding, or providing assistance for those involved in military operations in the CZ or QHDA. 2. Have an entitlement to HFP/IDP. A member serving in a QHDA without an entitlement to HFP/IDP is not entitled to tax exclusion. Members who perform service in a combat zone or QHDA for any part of any month are exempt from paying FITW or SITW for the entire month. The supporting documentation is a travel order/authorization. The documentation required for a member to be entitled to CZTE will be one of the following: Member's orders authorizing them to enter the QHDA that is authorized HFP/IDP A travel voucher with a commander's certification that the unit or member has performed active duty service within a QHDA that is authorized HFP/IDP or a CZ. Documentation reflecting assignment to a unit that has been determine to be in direct support. DoD FMR Volume 7A, Chapter 44, lists the areas considered CZs. Since a QHDA must be designated for entitlement to HFP/IDP, check out DoD FMR Vol 7A, Chapter 10. It provides the areas currently designated to receive HFP/IDP entitlement. When a member is in a CZ or QHDA designated for HFP/IDP and CZTE in accordance with the regulation, use FID 23 transaction to start/report the entitlement. Use FID FL transaction(s) when a member is performing extended official duty in an area entitled to CZTE but is not entitled to HFP/IDP. C O NT I NU E What documentation is required to process CZTE? A letter from the Commander Member's orders authorizing them to enter the QHDA An email from the member DD Form 114 SUBMIT Complete the content above before moving on. Allowances 00:32 With the exception of members currently attending initial basic military training, all Air Force members entitled to basic pay are entitled to receive a basic allowance for subsistence (BAS). That means the Air Force provides us with a monetary allowance for food. How many employers do you know of that can say the same? This unit will teach us how to determine correct BAS rates as well as how to use those rates to manually compute the allowance. This allowance literally helps to put food on the table! C O NT I NU E Basic Allowance for Subsistence (BAS) Introduction The purpose of BAS is to help offset costs for a member's meals. It is equal to the cost of the meals had the government provided them. BAS is based on a 30-day month. The rates are based on rank and circumstances. The following categories of BAS rates are established: 1. Officer BAS 2. Enlisted members BAS: a. Enlisted BAS (Standard) b. Enlisted BAS II OF F IC E R B AS E N L I ST E D STA N DA R D B A S E N L I ST E D B A S I I Officers become eligible for BAS starting from their commission date. However, it's important to note that individuals in Officer Training School (OTS) do not receive BAS unless they have a history of continuous prior enlisted service, either in the active or reserve components. Additionally, eligibility for BAS is contingent upon the receipt of basic pay. Type O BAS is specifically designated for Officer BAS. OF F IC E R B AS E N L I ST E D STA N DA R D B A S E N L I ST E D B A S I I Upon successful completion of basic training, all enlisted members become eligible for BAS. This entitlement commences on the day of departure from JBSA-Lackland-Basic Military Training (BMT). Enlisted personnel must also be receiving basic pay to receive BAS. BAS for enlisted members falls under the category of Type S, commonly referred to as Standard BAS. OF F IC E R B AS E N L I ST E D STA N DA R D B A S E N L I ST E D B A S I I BAS II is a supplementary allowance provided to enlisted personnel who are assigned to government quarters that lack proper food storage or preparation facilities, rendering them unable to cook their meals. In these situations, government messing services are not accessible, and government-prepared meals cannot be offered. To establish eligibility for BAS II in specific locations, a formal request must be submitted to the Air Force Installation and Mission Support Center (AFIMSC) for thorough review, ultimately requiring approval from the Air Force Accounting and Finance Office (AFAFO). BAS II is given in lieu of the standard enlisted rate, ensuring that service members in such circumstances receive adequate support for their nutritional needs. BAS II is paid on FID 09. FID 09 can be used to pay multiple entitlements at once. BAS II is associated to FID 56. The MMPA uses FID 40 to pay officer and enlisted BAS. You'll notice that at the end of each BAS entry, it will say "BAS-TYPE" and there will either be an "O" for officers or "S" for standard enlisted. BAS rates change annually, so you will want to pay attention to the current monthly rate for the months you are trying to compute. See examples below. E N L I ST E D STA N DA R D B A S E N L I ST E D T Y PE I I B A S O F F I C E R B A S E X A MPL E E X A MPL E E X A MPL E E N L I ST E D STA N DA R D B A S E N L I ST E D T Y PE I I B A S O F F I C E R B A S E X A MPL E E X A MPL E E X A MPL E E N L I ST E D STA N DA R D B A S E N L I ST E D T Y PE I I B A S O F F I C E R B A S E X A MPL E E X A MPL E E X A MPL E The standard BAS rate is the same for all enlisted members. Members who receive meals in a government dining facility (DFAC) will have to pay for their meals by having the discounted meal rate collected via payroll deduction. C O NT I NU E Computing BAS BAS rates are updated at the beginning of each calendar year. For the most current rates, go to the DoDFMR Vol 7A Ch. 25. Table Source: DoDFMR Vol 7A, Ch. 25, Table 25-1 To compute the daily rate for BAS, take the monthly rate and divide it by 30 (even if there are more or less days in the month). Multiply the daily rate by the number of eligible days in a 30- day month. Example: Amn Smith completes basic training and departs JBSA-Lackland on 15 January 2022. What is their BAS entitlement for January? Remember to include the day they departed BMT! Standard enlisted rate = $406.98 $406.98 ÷ 30 days = $13.566 Daily rate $13.566 x 16 days = $217.06 January entitlement There are ____ types of BAS. Type your answer here SUBMIT C O NT I NU E Process Meal Deductions Introduction Members who receive meals in a government dining facility and reside in single style government quarters pay for their meals by having the discounted meal rate collected via payroll deduction called meal deductions. These meals must be deducted regardless of whether or not the member eats at the DFAC. In this objective, we'll learn about meal deductions, their FID, and how you would process actions required for meal deductions. C O NT I NU E Meal Deductions Enlisted members who receive subsistence-in-kind are required to cover the cost of their meals through payroll deductions, a system commonly known as Essential Station Messing (ESM). The declaration of ESM is made by the commander overseeing the dining facility, typically the installation or mission support group commander (MSG/CC). Enlisted personnel (not currently paying meal deductions) who elect to use the dining facility are authorized two forms of payment: direct payment within the dining facility, or meal deductions processed at the rates below. Meal collections are computed using actual number of days. Multiply daily rate by actual days assigned to ESM. Example: A member is assigned to ESM effective 26 July 2023 There are 6 days of ESM in July (count the 31st day) 6 days x $12.90 = $77.40 meal collections for July Exceptions to Meal Collections A member’s assigned duties prevent them from being able to eat more than 20% of their meals in the dining facility on a regular basis. There are 90 meals available per month. 20% of 90 meals = 18 meals If a member consistently misses more than 18 meals per month, the unit commander may consider removing the member from ESM. Unit must submit a completed AF Form 220 to Financial Service Office (FSO). Enlisted members E7 through E9 are exempt from ESM. Crediting Meal Collections Regardless of their status or assignment, all military members receive full BAS. When a member goes on leave, DJMS automatically suspends meal collections. In this situation the 25 percent rule, which typically applies to meal deductions, does not apply. This ensures that service members continue to receive their full BAS support when they are away from their usual duty station. DJMS considers any other status change to create a break in the DN FID and will apply the 25 percent rule. Example: Member enters Absent Without Leave (AWOL) status on January 12 and returns to duty on January 15. The system will drop the DN effective January 11 and a DN01 must be submitted. Each start and stop day will collect at 25 percent. Compute BAS with Meal Collections Enlisted members receive full BAS except when in non-pay status (Absent Without Leave (AWOL), confinement, etc.). Example: An enlisted member is in pay status and assigned to ESM for the full month of March 2019. Step 1 – Determine full BAS entitlement if in full pay status for the whole month. Otherwise use daily rate of entitlement. Example: $369.39 is the monthly standard enlisted rate Step 2 – Multiply actual number of days assigned to ESM by the daily deduction rate. $10.50 x 31 days on ESM = $325.50 in meal collections Step 3 – Subtract result in Step 2 from Step 1. $369.39 - $325.50 = $43.89 full BAS entitlement PRO-TIP: For members whose meal charges should have been withheld from their pay, but were not, meal charges must be retroactively collected. There are three options for accomplishing these retroactive collections. Some of them have a significant impact on a member's paycheck so choose wisely. 1. Submit a DN01 with the retro date. This will create a sizable meal charge for the period of uncharged days. Please note, once the DN01 is submitted, the system will collect the whole DN amount in a single deduction from the member's pay. This has the potential of zeroing out a member's paycheck and is not the preferred method. 2. Submit a DN03 for each month (i.e., DN03 for 1-31 Jan., 1-28 Feb., etc.). This process will require multiple inputs by your office and manual tracking of the amount collected/amount due but will prevent the large collection from one paycheck and provide a better audit trail. 3. Calculate the actual meal charge amount and submit a DS01 for the meal charge, prorating the collection amount, citing appropriation 57*3500 32* 561.090525725. The problem with this option is that the system does not recognize the collection as a replacement for the DN, and if there was a later requirement to refund some part of the collected amount, a PI03 would not process because there would be no DN on the record. Due to duty requirements, certain career fields do not have automatic meal deductions started for their members upon arrival at their new Permanent Change of Station (PCS) locations. Firefighters, Office of Special Investigation (OSI), Command Post, and Airfield Management, are automatically exempt from meal deductions due to the nature of their jobs. Which FID is used to collect meal deductions retroactively? DQ20 DQ01 DS01 DS20 SUBMIT Complete the content above before moving on. Process Basic Allowance for Housing 00:31 Basic Allowance for Housing, or BAH, provides uniformed service members equitable housing compensation based on housing costs in local civilian housing markets within the 50 US states when government quarters are not provided. BAH is not intended to cover all of a service member’s housing costs. BAH is based on a member’s grade, dependency status, and location’s adequate housing cost. Rates are found at: Defense Travel Management Office (DTMO) website and DJMS table 059. BAH is processed using FID 35 and 68. In this lesson, we will cover four types of BAH: BAH with dependents, BAH without dependents, BAH partial, and BAH difference. Before you process BAH in Web DMO, you first need to verify that a member is entitled to BAH. Let’s start with members with dependents. Complete the content above before moving on. Basic Allowance for Housing (BAH) If it is determined that a member is authorized BAH, the supporting documentation must support the type that will be processed. Without the correct supporting documentation, the BAH should not be processed. When ready to code up the transaction, keep in mind the type of BAH needing to be processed as this will determine what FID is used. Your action codes will follow the FID and effective dates should be based on the provided supporting documentation being used. Members with Dependents For members to qualify for BAH at the with-dependent rate (referred to as BAH-W), they must prove dependency before it can be authorized. Dependents are categorized as either primary or secondary. Member Married to Member If two married people are both military members with no dependents, and they are assigned to the same or adjacent duty stations, both are entitled to basic allowance for housing without dependents (referred to as BAH-W/O). However, if they have a dependent, then one will receive BAH-W while the other one will receive BAH-W/O. When an active duty member is married to a reservist, the reservist is considered the active duty member’s dependent when the reservist is not in active status. When the reservist is in active status both are considered single members for BAH purposes and receive BAH-W.O. BAH-Difference This entitlement equals the difference between BAH-W and BAH-W/O. It applies only to members paying child support, has no other qualifying dependent(s), and resides in single type government quarters (barracks or dormitories). The member is entitled to receive BAH- difference (referred to as BAH-DIFF) as long as the support amount paid is at least the amount of the BAH-DIFF rate payable for the member’s grade. Partial rate BAH is not paid while a dormitory resident is drawing BAH-DIFF. If the member is authorized to reside off base, the entitlement changes from BAH-DIFF to BAH-W. Members without Dependents Members without dependents in the grades of E–4 and above with over three years of service may elect to reside off base without their commander’s approval. The housing management office (HMO) will approve payment of BAH-W/O for members in pay grades E–1 through E–4 when the dormitory occupancy exceeds a preset percentage. In any case, the entitlement always depends on whether these members are assigned to unaccompanied housing (dormitory). The responsible organization initiates and certifies the DAF Form 594, Application and Authorization to Start, Stop or Change Basic Allowance for Quarters (BAQ) or Dependency Re- determination. BAH-Partial A member without dependents assigned to single-type government quarters that is not entitled to receive any other type of BAH will receive BAH-partial. Members in pay grade E–4 under three years or below who are assigned single-type government quarters but elect not to occupy such quarters and reside in private quarters at their own expense are considered assigned to government quarters. Therefore, the member is entitled to BAH-partial. Additionally, those members without dependents who reside in the dormitory will be paid BAH-partial. BAH-partial is a flat rate based on the member’s grade. The duty location has no bearing on this type of BAH. BAH-Transit BAH-Transit (BAH-T) is designed to offset a portion of the housing expenses incurred by, and as a result of, members and/or their dependents living in non-government quarters. The applicable rates are based upon grade and dependency status and does not consider adjustments for local housing costs. BAH-T is processed using FID 35. It is paid to members in a travel status on a PCS when the member’s losing PDS is located outside the United States (other than Alaska or Hawaii) and member was accompanied at the PDS. It is also paid when the member is in the accession pipeline, which includes Reserve Officer Training Corp, Air Force Academy graduates, and Officer Candidate School, and travel is between initial entry training sites to the first PDS. New accession members are authorized BAH- Transit only during periods of travel between their duty or training sites and their initial duty location. Entitlement to BAH while TDY en route in a PCS status There are times when a member without dependents performs a TDY while in a PCS status en route to a new permanent duty station (PDS). If the member qualifies for BAH-W/O, the entitlement continues while at the TDY location. However, the entitlement will cease if the member resides in government quarters more than 30 days. The BAH entitlement changes to the partial rate on the 31st day. The BAH-W/O entitlement resumes when the member vacates those quarters. The BAH-W/O rate for the PCS period is based on the member’s previous duty location. The housing management office at the TDY location should notify the financial services officer of the changes via DAF Form 594, Application and authorization to Start, Stop, or Change Basic Allowance for Quarters (BAQ) or Dependency Determination. Start Dates BAH-W is started the day the member enters active duty if the member has a dependent. Other dates to start BAH-W are as follows: 1. The date the member terminates government quarters. 2. The date the member acquires a dependent. 3. The date stated in the dependency determination. Stop Dates Stop dates of BAH-W include the following: 1. Date of death of the member or the member’s sole dependent. 2. Date of the member’s divorce if the member has no other dependent. 3. Date of the dependent child’s marriage if the member has no other dependents. 4. Date prior to the day the sole dependent enters active duty. 5. Day prior to the member being assigned base housing. 6. Day before the member enters a no pay status, such as AWOL. 7. Day of member’s retirement, discharge, or release from active duty. As you can see, common sense applies when determining start and stop dates. BAH-W is not payable when the dependent no longer meets the dependency requirements. Base housing, no pay status, and no longer being on active duty are causes to stop BAH-W. C O NT I NU E Match the BAH rates with the correct description. Paid to service member when BAH - T traveling between duty locations Paid to members with eligible BAH - W authorized dependents Paid to members with no BAH - W/O dependents BAH - Diff Paid to members that pay child support and live in government quarters SUBMIT Complete the content above before moving on. Below are some more examples to help build your cheat sheet: 130R - Single, in the dorms 200R - Single, off base/privatized housing 201N - Single non-custodial parent paying child support, off base/privatized housing 201C - Single custodial parent, off base/privatized housing 201A - Married to civilian spouse, off base/privatized housing 200I - Married Mil-to-Mil, no kids, off base/privatized housing 201W - Married Mil-to-Mil, with child, off base/privatized housing 11A - Married to civilian spouse, government housing on base (different than privatized) 11C - Single custodial parent, in government housing on base (different than privatized) These are not all inclusive, so feel free to add to your cheat sheet as you come across new scenarios. There is a full list of these BAH codes in the AFMAN 65-116 Vol 1, Chap 26, para 26.32. Keep in mind that the AFPC-OL holds the overall responsibility for determining secondary dependencey entitlements. Substantiating Documentation*: DAF Form 594 (Application/Authorization to Start, Stop, or Change Basic Allowance for Quarters) DD Form 114 (Military Pay Order) Dependency Documentation (i.e. marriage certificate, divorce decree, birth certificate) *Note: If assisting a member with secondary dependent documentation, ensure all documents are legible, clear, translated (if applicable), and thorough. C O NT I NU E Compute Family Separation Allowance (FSA) 00:25 Sometimes the military will send us places that our dependents are not authorized to go. Whether it's a TDY or a PCS, family separation allowance (or FSA) is intended to help alleviate expenses incurred due to the temporary separation from dependents. In this lesson, we'll go over the different types of FSA, the corresponding forms, the assigned FID, and how to compute the allowance. C O NT I NU E Family Separation Allowance (FSA) A member with dependents may be authorized FSA under one of the following conditions: Transportation of dependents is not authorized at government expense, and the dependents do not live in the vicinity of the permanent duty station (PDS). Transportation of dependents is authorized at government expense, but the member elected an unaccompanied tour of duty because a dependent cannot accompany you to the PDS due to certified medical reasons. You are on duty aboard a ship, and the ship is away from the homeport continuously for more than 30 days. You are on temporary duty (TDY) (or temporary additional duty) away from the PDS for more than 30 days, and your dependents are not residing at or near the TDY location. There are three types of FSA: FSA Restricted (FSA-R), FSA Ship (FSA- S), FSA Temporary (FSA-T). R E ST R I C T E D ( F SA - R ) SH I P ( F SA - S) T E MPO R A R Y ( F SA -T ) FSA-R is authorized for members with dependents assigned to a dependent restricted tour and transportation of dependents is not authorized at government expense and the dependents do not live at or near the member's PDS. If travel has been completed then a signed DD Form 1561, PCS orders (and amendments if applicable), and DD Form 1351-2 is used as supporting documentation. If the member is applying for FSA at the start of travel, a signed DD Form 1561 and PCS orders are required. R E ST R I C T E D ( F SA - R ) SH I P ( F SA - S) T E MPO R A R Y ( F SA -T ) FSA-S is authorized for members who are on duty aboard a ship, and the ship is away from the homeport continuously for more than 30 days and the dependents are not required to reside in the vicinity of the homeport. Documentation needed to process FSA-S is a DD Form 1561 and substantiating documentation which shows member was assigned to the ship away from the homeport continuously for more than 30 days (such as TDY orders). R E ST R I C T E D ( F SA - R ) SH I P ( F SA - S) T E MPO R A R Y ( F SA -T ) A member authorized FSA-T if they are on TDY away from the PDS continuously for more than 30 days, and the dependents do not reside at or near the TDY station. This includes members who are required to perform a period of TDY before reporting to their initial station of assignment. Review the member's travel order to determine location and days of TDY. When determining entitlement, the return date is included in the required 30 day away period. Documentation needed to process FSA-T is DD Form 1561, TDY orders and DD Form 1351-2 (if reporting the transaction). Pro-Tip: Due to the increasing number of members who are entitled to FSA-T, Air Force policy now requires that the servicing FMF (home station) input the start transaction (6501) at departure, based on the member's orders to duty for more than 30 calendar days and the member's completed certification on DD Form 1561. This means that when a member comes to Finance to out-process for deployment, we should be asking if they have dependents so that the DD Form 1561 can be accomplished prior to their departure. Then you complete the DD Form 114 which should include the following statement: "I certify that this member is in receipt of orders for a period of more than 30 calendar days and that member has completed DD Form 1561". Conditions of Entitlements For members who are married mil-to-mil with no dependents, FSA is payable regardless of whether the member has any non-active duty dependents when all other general conditions are met, and provided members were residing together immediately before being separated by reason of execution of military orders. Only one monthly allowance may be paid to a married military couple for any one month. For members who are married mil-to-mil with dependents, FSA is payable to both married members when they reside together with their dependents immediately before being separated from dependents by competent orders. Each member’s entitlement is determined individually. When a member receives temporary social visits by dependents, credit continues to accrue while the member’s dependents visit at or near his or her PDS, ship or TDY location, but for no longer than 3 continuous months. Facts must clearly show that the dependents are visiting and not intended to exceed 3 months. Additional information regarding special circumstances is available in the DoDFMR Vol. 7A, Ch. 27. Computing FSA The monthly rate for FSA is $250 and it is prorated at a daily rate. So, it is calculated at $250.00 / 30 days = $8.3333/day. The effective start date is the date the member departs their home station and the stop date is the day prior to the date the member returns to home station. FSA is not authorized entitlement while on leave status. What is the required documentation for reporting FSA-T before the member departs for the TDY location? Travel Orders and DD Form 1561 DD Form 1351-2, DD Form 1560, Travel Orders DD Form 1561 Travel Orders SUBMIT Complete the content above before moving on. Clothing Allowance 00:30 The Air Force has established what to wear, and how to wear it. And as enlisted we are given an allowance to replace our uniforms annually. Officers, on the other hand, only receive an initial clothing allowance. When we are sent to an area where we cannot wear our uniforms, we are paid an allowance to purchase alternate clothing. Some duties require special uniform items not issued during basic military training. In this unit, we will focus on different types of cloting allowances, and when each one would be authorized. C O NT I NU E Clothing Allowance The Secretary of Defense (SecDef) may, on an annual basis by law and under Presidential Executive Order, prescribe the quantity and kind of clothing to be furnished to an enlisted member of the military services and may prescribe the amount of cash allowance to be paid if the clothing is not furnished. Types of Clothing Allowance Enlisted clothing allowances Initial Supplemental (Extra) Maternity Officer clothing allowances Civilian clothing allowances Miscellaneous clothing provisions Types of Military Clothing Maintenance Allowance (CMAI) There are two primary categories of CMAI. STA N DA R D I N I T I A L C L O T H I N G A L L O WA N C E SPE C I A L I N I T I A L C L O T H I N G A L L O WA N C E This allowance serves to either supplement or completely cover the initial expenses associated with mandatory clothing bag items. It can be disbursed as cash or provided in-kind. Members may receive this allowance to offset or cover the initial costs of essential clothing bag items, and it can be provided as either cash or in-kind support. Prior service enlisted members who reenlist into active duty (regAF) more than three months after their discharge are entitled to the full CMAI. If they reenlist into a reserve component (AFRC or ANG) and report for or are recalled to active duty for more than six months, they are eligible for an adjusted CMAI. The MPF will furnish the finance office with the necessary duty dates for calculation. STA N DA R D I N I T I A L C L O T H I N G A L L O WA N C E SPE C I A L I N I T I A L C L O T H I N G A L L O WA N C E This specific allowance is granted to enlisted personnel under certain circumstances, such as when they are assigned to a tour of duty that requires uniform clothing (excluding special dress uniforms). It is typically authorized only once during a continuous active duty period. This allowance is reserved for enlisted members who are assigned to specific duty tours or attain a status that necessitates wearing uniform clothing (except special dress uniforms). It can only be authorized once during any continuous active duty period. Enlisted members entering an officer training program or joining a military band with uniform styles different from those in their pay grade. C O NT I NU E Clothing Replacement Allowance (CRA) Overview The Clothing Replacement Allowance (CRA) serves as an initial replacement fund for uniform items and is applicable during the first three years of active service following the receipt of a Clothing Maintenance Allowance Initial (CMAI). B A SI C C R A STA N DA R D C R A SPE C I A L C R A Basic CRA becomes effective on the first day of the month after completing six consecutive months of active duty, irrespective of any time lost. Upon reaching the one-year mark of uninterrupted military service, the first payment equals half of the current fiscal year rate. Payments for the second and third years occur at the end of the member's anniversary month. B A SI C C R A STA N DA R D C R A SPE C I A L C R A Standard CRA supports the replacement of uniform items after completing three years of active service following the receipt of a CMAI. It functions as the primary replacement allowance during the first three years of active duty after receiving a reduced, partial, or special CMAI. B A SI C C R A STA N DA R D C R A SPE C I A L C R A Special CRA covers the replacement of uniform items after completing three years of active service subsequent to receiving a special CMAI. Payments are made annually at the end of the member's anniversary month, based on the applicable fiscal year rate in effect. Pro Tip: While receiving special CRA, the service member is not eligible for any other cash clothing replacement allowances, such as those for the Air Force Honor Guard or Air Force Band, during that period. Supplemental (Extra) Clothing Allowance The Supplementary Clothing Allowance, often referred to as the Extra Clothing Allowance, is granted to personnel when they are assigned to specialized units or duties that demand additional or unique uniform items beyond the standard requirements for most enlisted members in the Air Force. Eligibility for this allowance is confirmed on an annual basis by the member's unit commander. The FID for this allowance is FID 61. Detailed information regarding the various categories can be located in AFMAN 65-116 Attachment 9. Furthermore, there is a specific Maternity Clothing Allowance, which is applicable to pregnant members of the Regular Air Force (regAF), Air National Guard (ANG), and Air Force Reserve Command (AFRC). This allowance is disbursed once every three years, with subsequent payments determined by the actual date of the previous disbursement. C O NT I NU E Officers Uniform and Equipment Allowance (UEA) UEA is processed under FID 59. Members may qualify for an initial uniform allowance and/or an additional active duty uniform allowance to offset the expenses associated with acquiring mandatory uniforms and equipment. Eligible officers receive a $400 reimbursement to assist with the purchase of uniforms and equipment, irrespective of their commission source or prior enlisted service. Officers Uniform and Equipment Allowance (UEA) - Additional Additional UEA is processed under FID 60. It is a $200 allowance granted for each entry or reentry into active duty, including active duty for training, if the service duration exceeds 90 days. This includes authorized travel time. The qualifying service can be under orders explicitly specifying active duty for over 90 days or under two or more consecutive orders requiring a continuous period of more than 90 days on active duty. C O NT I NU E Civilian Clothing Allowance In addition to any other authorized clothing allowances, individuals directed by competent authority to wear civilian clothing for more than 50% of their official duty time, as a military necessity, are eligible for a Civilian Clothing Allowance. This allowance is categorized into Permanent Duty and Temporary Duty (TDY), with specific guidelines as follows: PE R MA N E N T DUT Y T DY Payable to members assigned to qualifying permanent duty locations. Types: Initial: Payable only once in any 3-year period. Not paid if the member has been out of a qualifying assignment for less than 12 months. Replacement: Payable at the end of the anniversary month of the member commencing the qualifying assignment if it is projected that they will serve at least 6 additional months in a qualifying assignment. Note: Officers must be assigned duty to an overseas location to be eligible for the civilian clothing allowance. PE R MA N E N T DUT Y T DY Applicable when the Permanent Duty Civilian Clothing Allowance is not applicable. The total amount of all TDY Civilian Clothing Allowances within a 36-month period cannot exceed the maximum allowed for TDY of at least 30 days. TDY Civilian Clothing Allowance has two maximum rates: TDY > 15 days within a 30-day period: Payable when the member will be on TDY for at least 15 consecutive or cumulative days within a 30-day window. TDY > 30 days within a 36-month period: Payable when the member will be on TDY for at least 30 consecutive or cumulative days within a 36-month timeframe. Pro Tip: The 15-day threshold requirement does not apply to certain personnel, including Explosive Ordnance Disposal, Explosive Detector Dog Personnel on U.S. Secret Service Support Duty, Defense Courier Service couriers, or Defense Threat Reduction Agency military personnel. They are eligible to receive the maximum payment for TDY of at least 30 days upon their initial TDY assignment, regardless of the length of their TDY. C O NT I NU E Which of the below is not a paid clothing allowance? Supplementary/Extra Clothing Allowance Follow-on Clothing Allowance Maternity Clothing Allowance Officers Uniform and Equipment Allowance SUBMIT C O NT I NU E Overseas Station Allowances 00:30 Members overseas incur costs and have expenses just the same as if they were stationed in the states. Some of these expenses, such as housing costs and food, can be quite high. Several entitlements have been developed to assist us in these areas. This objective discusses the Overseas Housing Allowance (OHA) and Cost of Living Allowance (COLA). We'll also take a look at the Move In Housing Allowance (MIHA) and the Temporary Lodging Allowance (TLA) as they also pertain to overseas assignments and excess costs. C O NT I NU E Cost of Living Allowance The Overseas Cost of Living Allowance (COLA) is designed to assist members in defraying the excess costs incurred incident to assignment on permanent duty to a station outside CONUS. Conditions of entitlement to COLA are contained in the DoDFMR Volume 7a, Chapters 67 and 68. It's intended to equalize purchasing power so that service members can purchase the same level of goods and services overseas as they could if they were stationed in CONUS. COLA is not a fixed amount and can fluctuate based on foreign currency exchange rates. CONUS COLA is designed to help offset higher costs of living expenses in high cost areas that exceed averages by 8% or more. Payment is based on the location, rank, years of service, and dependency status (FID 35) paid at the with or without dependent rate. For members married to members, each is entitled to CONUS COLA in his or her own right. Only one member may claim the with dependent rate when they have dependents in the same residence. Process CONUS COLA using FID 51. Overseas COLA, is designed to assist members in defraying excess costs incurred while assigned outside CONUS. Payment is based on the location, rank, years of service, and dependency status (FID 35) paid based on the number of dependents. For members married to members, each is entitled to COLA in his or her own right. Only one member may claim the with dependent rate when they have dependents in the same residence. Dependents must be command sponsored for the member to receive overseas COLA. Members without dependents who reside in dormitories and on ESM(Essential Subsistence Messing) are entitled to the bachelor rate, or 63% of the single rate. Process overseas COLA using FID 46. Dual COLA is for members assigned outside CONUS who receive overseas COLA at the applicable without dependent rate and CONUS COLA at the with dependent rate for the area where the primary dependent resides. Only payable if there are no command sponsored dependents residing with the member. At no time will overseas COLA and CONUS COLA be paid concurrently at the with dependent rate. Process dual COLA using FID 47. C O NT I NU E Match the FID with the corresponding COLA type. CONUS COLA 51 Overseas COLA 46 DUAL COLA 47 SUBMIT Complete the content above before moving on. Overseas Housing Allowance (OHA) We've learned that BAH is the housing allowance for stateside assignments, but OHA is the housing allowance paid when stationed overseas. It works a little differently than BAH does. OHA is calculated by using the member’s monthly rent not to exceed the prescribed locality rate based off the rental allowance ceiling and adding the appropriate utility/recurring maintenance allowance for the specific area. The ceilings for members with dependents are based on housing cost data obtained from members in each area concerned. The ceilings for members with and without dependents are found on the Defense Travel Management Office website at https://www.travel.dod.mil/Allowances/Overseas-Housing-Allowance/OHA-Rate-Lookup/. The dependency status code of the FID 43 must match FID 35. OHA is processed using the DD Form 2367 (Individual Overseas Housing Allowance Report). The "Rent" area of the 43 line shows the actual rent the member pays and is stated in the lease, reported in the currency paid. If the member has any recurring condominium or homeowner association fees, they should be prorated to a monthly value and paid monthly. If the member owns their dwelling, derived rent is determined by dividing the actual purchase price by 120 and is in US Dollars (USD). Include any personal installment, or real estate equity loans prior to determining derived rent. If the dwelling owned is a mobile home or vessel, monthly lot/berthing fees will be paid in this amount. Maximum rent allowable is established by grade and determined by Per Diem Travel and Transportation Allowance Committee (PDTATAC). It prevents the member from being reimbursed more than a reasonable amount for rent and is located in DJMS Table 65. Rent paid is converted to USD equivalent and compared to the max rent allowed. OHA is based on the lesser. Utility/Recurring Maintenance Allowance is based on expenses reported by members with dependents. Utilities covered by the landlord are not reimbursable. Members are classified into four categories: Member married to member and maintaining a joint household; each member may be entitled to half of the allowance. Member defined as a sharer may be entitled to a pro-rata share of the allowance. Member with dependents may be entitled to full allowance. Member without dependents, non-sharer may be entitled to 75 percent of the allowance. Payment of OHA while on terminal leave: If a member returns to CONUS, OHA must be stopped. If a member returns to overseas area, OHA must be adjusted. Payment of OHA during PCS must be stopped one day prior to PCS departure. If a member is assigned to a restricted overseas area and dependents remain at the old station, new duty station FSO must restart OHA and restricted area housing, if applicable. If a member is a assigned to CONUS and dependents remain at the station where overseas housing is authorized for dependents, CONUS FSO restarts OHA as well as BAH, if applicable. FSH-O is designed to offset a portion of housing expenses incurred by, and a result of, a member living in non-government quarters outside the US and geographically separated from their dependents. Government quarters must be unavailable, dependent travel must not be authorized at the government’s expense to either duty station or a nearby location, and the dependents must not already be living in the vicinity of the duty station. Payment is based upon member’s grade, dependency status, housing expenses and the locations adequate housing costs. C O NT I NU E How much of the utility allowance does each mil-to-mil member residing in the same household receive? Half Full A Third Partial SUBMIT Complete the content above before moving on. Temporary Lodging Allowance (TLA) Upon first arriving at a new duty station overseas, finding a place to live is typically a priority. The Air Force understands that until a home is found, a member will incur expenses for living in temporary accommodations. Temporary Lodging Allowance was developed to help offset some of those expenses and is specific to when a member is in PCS status overseas. The purpose of TLA is to offset lodging and meal costs while occupying Outside the Continental United States (OCONUS) temporary lodging. TLA is payable when it is necessary for a member and/or dependent(s) to occupy temporary lodging upon arrival at, or immediately before leaving, a PDS OCONUS. The senior commander of the service in the country/Area of Responsibility (AOR) is the TLA authority. In locations where more than one service is represented, the senior commander of all the services is the TLA authority. The TLA authority must issue written TLA guidance. The authority must also establish policies to fully emphasize use of available government facilities, priority placement for members in TLA status over other occupants, encourage use of lodging with facilities for prepping meals, and maintain contact with the private-sector for permanent housing, and provide incoming families current information concerning location and cost. The TLA authority must advise members on the importance of aggressively seeking permanent quarters, the limitations on the number of authorized TLA days, and obtaining and keeping receipts to support TLA expenses. Types of TLA Type I Incoming, upon initial arrival or Type I reporting at a PDS OCONUS, not- to-exceed 60 days. Type X Incoming with extensions, Type X required when 60 days is exceeded. Type D Departure, immediately preceding Type D departure for a PCS from a PDS OCONUS, not-to-exceed 10 days. Type E Departure with extensions, Type E required when departure claims exceed 10 days. Type K Kitchen renovations, when kitchen is under renovations, but occupants are not required to Type K obtain temporary lodging, entitlement is based ONLY on meal portion of meals and incedental expenses. Type R Full renovation, when renovation or Type R special circumstances require occupants to occupy temporary lodging. TLA Computation TLA is calculated in increments of 15 days, except when more than one TLA rate applies within the computation period. If fewer than 15 days remain, compute the remaining days as one period. When determining the lodging expense, add the currency conversion fees charged by the Government Travel Charge Card (GTCC) along with any lodging tax. Number of Eligible Persons Occupying Percentage Applicable Temporary Lodging Member or 1 dependent 65% Member and 1 dependent, or 2 100% dependents only For each additional dependent 12 and 35% over, add For each additional dependent under 25% 12, add Payment of TLA is reflected in DJMS as FID 79 and substantiating documents are: AF Form 1357, Request for TLA is used to start, stop, or change entitlements The TLA type must be identified on the AF Form 1357. Include dates when HHGs were available for delivery and the date HHGs were delivered and accepted by member. Form must be certified by housing, transportation and billeting officers. Official orders are required for the original payment. Later payments require cross- reference to original payment Receipts for any lodging expense claimed Unpaid bills may be used when anticipating expenses to pay member before departure. If the receipt is lost, the member certifies a statement of lodging expense containing dates, places, establishment names, and amounts. DD Form 114 Match the TLA types with their corresponding description. Authorized at initial arrival Type I OCONUS and is not to exceed 60 days Incoming with extensions when Type X 60 days is exceeded Authorized at OCONUS departure Type D and does not exceed 10 days Authorized at OCONUS departure Type E claims exceed 10 days Kitchen in under renovation but Type K occupants are not required to obtain temporary lodging Type R Full renovation and special circumstances require temporary lodging occupancy SUBMIT Complete the content above before moving on. Move-in Housing Allowance (MIHA) Move-in Housing Allowance is intended to defray costs associated with occupying privately leased or owned quarters covered by the OHA program. MIHA is reflected as FID 42 on the pay record and is processed as a one-time entitlement. OHA must be processed prior to reporting MIHA. There are three categories of MIHA. Reflects average expenditures made by members to make dwellings habitable. Payable with MIHA / Miscellaneous OHA FIDs 43 and 45 and is paid 1 of 3 based on table rates. The transaction entitlement amount is zero filled. Payable only when approved by the housing office and is not payable to homeowners. Payable with OHA MIHA / Rent FIDs 43 and 45. Report the total rental amount in dollars and cents in the entitlement field. 2 of 3 Payable only in specified areas with OHA FIDs 43 and 45. Report the total security amount in dollars and MIHA / Security cents in the entitlement field. This MIHA type is also edited for validity of security location. 3 of 3 Complete the content above before moving on. MIHA can be reported before OHA is processed. True False It depends. SUBMIT Complete the content above before moving on. Deductions and Allotments 00:34 We learned about allowances in the previous unit which make up the bulk of the "entitlements" column on a member's LES. There are two more columns on an LES and both reduce the amount of pay due to service members. In this unit, we'll learn about deductions and allotments that impact a member's pay from voluntary deductions like allotments, to involuntary deductions such as taxes, fines, and forfeitures. Our ability to explain reductions in a member's pay can help reduce friction when providing customer service. C O NT I NU E Taxes The Internal Revenue Service (IRS) taxes everyone's wages regardless of status. However, as military members, we get a break. The IRS taxes items of pay to include, but are not limited to the following: Basic Pay Incentive Pay Special Pay Leave Sell Any type of bonus Let's get into the lesson and learn how to compute amounts for Federal Income Tax Withholding (FITW), Federal Insurance Contributions Act (FICA), and State Income Tax Withholding (SITW). C O NT I NU E Federal Income Tax Withholding (FITW) FITW is one of several deductions taken from member's pay each pay period. Income Tax is essentially a pay-as-you-go system in the United States that allows you to pay federal taxes as your income is earned rather than in a lump sum at the end of the year. FITW is normally computed using member's Federal wages and DJMS on-line Table 073. One- time entitlements are taxed at the federal flat rate percentage, which is 22% as of 2020. Upon a member's initial reporting for duty at the Financial Services Office (FSO), certain administrative tasks are mandated. The FSO is responsible for ensuring that each member completes the W-4, Employee's Withholding Certificate. Furthermore, the FSO must meticulously record the member's essential data and withholding factors. These measures are essential to ensure compliance with tax regulations and maintain accurate records for tax- related matters. FITW is reflected on the FID FJ. C O NT I NU E FICA FICA annotated as FID FC is made up of Social Security (6.2%) and Medicare (1.45%) deductions. Use only the basic pay to compute FICA. Social Security = Basic Pay x 6.2% Medicare = Basic Pay x 1.45% If a member is participating in the Montgomery GI Bill (MGIB) or Traditional Thrift Savings Plan (TSP), the monthly deduction will decrease taxable wages. A maximum yearly wage is subject to FICA. It differs between the portion of FICA for Social Security and Medicare. There is no limit on the amount of wages subject to Medicare withholding. Once the maximum amount has been withheld, the monthly FICA deductions will stop. FICA rates change. To confirm current rates consult the DoD FMR Vol 7A. When a member is fined by court-martial and the fine is deducted from the member's pay, the amount of the fine is subject to taxes. When a member must forfeit pay because of court-martial or Article 15, the forfeiture is a loss of entitlement to the basic pay. Therefore, the amount lost is not subject to taxes. Still not sure you understand why FICA is important? Maybe the below video will help simplify it all. YOUTUBE Calculating state taxes and take home pay | Taxes | Finan… Calculating state taxes and take home pay | Taxes | Finance & Capital Markets | Khan Academy Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: https://www.khanacademy.org/economics-finance- domain/core-finance/taxes-topic/taxes/v/calculating-state-taxes-and-take- home-pay Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core- finance/taxes-topic/taxes/v/marriage-penalty? utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmar kets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core- finance/taxes-topic/taxes/v/calculating-federal-taxes-and-take-home-pay? utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmar kets Finance and capital markets on Khan Academy: Benjamin Franklin (and several other writers/philosophers) tells us that "In this world nothing can be said to be certain, except death and taxes." VIEW ON YOUTUBE  Complete the content above before moving on. State Income Tax Withholding (SITW) Each employee will complete a withholding certificate SITW as a basis for proper withholding. The certificate will specify the employee's tax liability, place of residence, place of employment, exemptions, and allowances. The employee is liable to the state of employment where the duty station is located. All wages and salaries subject to FITW are also subject to SITW. The completion of DD Form 2058, State of Legal Residence Certificate, is a crucial requirement. This form aids in recording the member's state of legal residence, which is pivotal for State Income Tax Withholding (SITW) purposes, denoted as FID MG. Due to the rate changes happening annually, the regulations cannot list each state's rates and remain current. So you'll need to go to the respective state website for tax rates when calculating SITW. To determine what current information is loaded into the MMPA, you can use table JWMM and view that data. State income taxes are withheld from the pay of members whose states of legal residence have formalized agreements with the US Treasury for state income tax withholding. The amount of SITW will be in accordance with the agreement between the Department of Treasury and the State. Any forms specifically prescribed by the agreement must be used such as declaration of allowances, exemptions, and exclusions for example. In some cases, declaration of exemption from state withholdings can be pursued. Members can claim exempt from SITW for the following reasons: Members are residents of states that grant exemption based on specific residency requirements. Members claim exempt from FITW, and state claimed for legal residence parallels federal rules (i.e. Puerto Rico). If you qualify for the exemption, you must complete a DD Form 2058-1, State Income Tax Exemption Test Certificate, or state-specified forms as previously mentioned. This can also be done in myPay by navigating to the SITW section. For those state specific requirements and forms, AFMAN 65-116 Vol 1, Chapter 56 provides detailed information regarding the unique state and territory residency stipulations and how they may impact a member's SITW deductions. You might wonder why we pay state taxes in the first place or why some states don't deduct state income taxes. Both are fair questions. There are currently 9 states that do not tax earned income. C O NT I NU E Computing Taxes The computation of taxable wages follows a structured process. Step 1 – Sum up all components of pay, excluding allowances. Example: $4609.80(Basic Pay) + $150.00 (Demolition pay) + $375.00 (Special duty pay) = $5134.80 Step 2 – Subtract any deductions that are tax-exempt or tax-deferred, such as the GI Bill or the Traditional Thrift Savings Plan, if applicable. Since there is no GI bill or TSP in our example: $5134.80 –$0 = $5134.80 Step 3 – Multiply the number of exemptions claimed by the exemption amount, representing the total exemption amount for that month's wages. FID FJ shows single with 0 exemptions 0 x $350.00 = $0 Step 4 – Subtract this exemption amount from the initial sum of pay items to arrive at the net taxable wages. This net taxable wage amount is then used in conjunction with a yearly-updated chart to determine the specific withholding amount for taxes. This method ensures an accurate and systematic approach to computing taxable wages and tax withholdings, taking into account exemptions and relevant deductions. Since there were no exemptions claimed: $5134.80 –$0 = $5134.80 Step 5 – Utilize the tax tables to determine the final withholding amount. First, find the amount to the right of "EXCESS OVER" in the tax table, then subtract it from the net taxable wages. Next, multiply the result by the applicable percentage indicated in the table. Finally, add the amount to the left of "PLUS" in the tax table to this result, yielding the total tax withholding amount based on the member's net taxable wages and the tax table. See the image below for the tax table in our example. $5134.80 - $3606.00 =$1528.80 $1528.80 x 22%=$336.336 (use regular rounding rule) = $336.34 $336.34 + $378.52= $714.86 Step 6 – Add any additional withholdings that the member has specifically requested, aside from the standard tax withholding, to the calculated tax withholding amount. Our example has no additional withholdings: $714.86+ 0 =$714.86 This comprehensive process ensures that all necessary tax deductions and member-requested withholding's are accurately applied to the individual's pay, ensuring compliance with tax regulations and the member's preferences. Match the taxes with their corresponding FID Federal Taxes FJ FICA Taxes FC SITW MG SUBMIT Indicate all entitlements that are subject to FITW. Basic Pay Basic Allowance for Housing Leave Sell Incentive Pay Special Pay SUBMIT C O NT I NU E Miscellaneous Deductions 00:27 We know taxes come out of our pay. But there are other types of miscellaneous deductions that also impact a member's finances. In this lesson, we'll learn how contributions into the Trift Savings Plan (or TSP) will mean additional deductions on an LES. We'll also cover the unfortunate types of deductions such as garnishments, fines, and forfeitures. Complete the content above before moving on. Thrift Savings Plan The Thrift Savings Plan (TSP) is a Government-sponsored retirement savings and investment plan operated by the Federal Retirement Thrift Investment Board (FRTIB). Members of the Uniformed Services participating in TSP will be governed by statutes set forth by the Federal Retirement Thrift Investment Board (FRTIP) and the IRS. TSP eligibility is determined by any member of the uniformed services serving on active duty and any member of the ready reserve in any pay status may participate in the TSP in accordance with 5 U.S.C. §8440e. Also, a member of the reserve component (ANG or AFRC) who is also a federal civilian employee has two TSP accounts if participating in the TSP as a military member and a civilian. All contributions deducted from the member's pay each pay period are forwarded by DFAS, to the National Finance Center in New Orleans, Louisiana. The National Finance Center invests member contributions into the ‘G’ fund immediately upon receipt. Interfund transfers is a member self-service option and is between the member and the National Finance Center. There are two ways for a member’s TSP contribution to be updated. Members can control their TSP by taking action in myPay. If a member does not have access to myPay then Finance can take action depending on the member's request. Members should note that changes made to TSP via myPay may not update immediately. While myPay sends transactions to DJMS daily, there may be a delay in pay system updates. If the effective date is prior to the current calendar month and the start date is also less than the current calendar month, the transactions should start in the current month. If this condition occurs and the transaction is received after mid-month cutoff, the whole amount should be deducted from the member’s end of month pay. If the effective date is prior to the current calendar month and the start date is after the current calendar month the transaction should recycle to the month of the start date and then process. Roth TSP (FID D6) Roth TSP Taxed at the time of contribution. 1 of 3 Traditional TSP (FID D1) Taxed upon withdrawal; accepts transfers to and from eligible Traditional TSP employer plans/traditional Individual Retirement Accounts (IRAs). 2 of 3 Blended Retirement System (BRS) Blends the retirement annuity Blended Retirement System with an Airman’s TSP and (BRS) government matching contributions. | Member/DoD contributions begin after 60 days of service. | DoD begins matching (up to 4%) after 2 years of service. | Monthly 3 of 3 TSP earnings become available at retirement age. TSP “Catch Up” Eligible TSP participants, who are age 50 or older, may make tax-deferred “catch-up” contributions from their taxable basic pay to their Thrift Savings Plan accounts. For current annual limitations, go to www.tsp.gov. Since these contributions are to be made from pre-tax dollars, catch-up contributions cannot be made from basic pay that has been excluded from taxation due to service in a combat zone. These contributions are to be made through payroll deduction. Participants can make, change, or stop a catch-up election at any time, beginning in or after the year in which they turn age 50. Elections are made in whole dollar amounts, up to the yearly limit. Because the annual limits change each year, the member is to make a new election each calendar year. To be eligible, a member must be in pay status and be contributing either the maximum TSP contribution percentage of basic pay or an amount which will result in reaching the IRS deferral limit by the end of the calendar year of election. The member must be at least 50 years old in the year the catch-up contributions are made. The member must not be in the 6-month non- contribution period following receipt of a financial hardship in-service withdrawal. Thrift Savings Plan Catch-up is posted to DJMS as a FID DS debt, Type H. The Thrift Savings Plan website is manually updated to reflect as a late payment, retroactive to the month prior. The contributions accrue interest effective as of the end-of-month deducted. DJMS updates taxable wages each month, with the exception of December and the month the statutory limit is reached, to reflect the catch-up contributions. The wages for the month the member reaches the statutory limit are updated manually, and the taxes are refunded during that next month. DFAS also manually updates the taxable wages for the year-to-date to include December's contribution, but that isn't accomplished until after year-end, so no refunds are made. For those members who deposit all of their catch-up contributions in December, the taxes withheld on the amounts that should have been deferred are only available upon filing their tax returns. C O NT I NU E Garnishments A held pay for garnishment is utilized to retain a portion of a member's pay, which would otherwise be disbursed, for the fulfillment of court-mandated child support or alimony payments. DFAS typically receives most court-ordered garnishments for dependent support directly from the courts, the FSO may also be the recipient. Upon receipt of such documentation, it's imperative to immediately forward to: DFAS-HGA/CL P.O. Box 998002 Cleveland, OH 44199-8002 Upon receipt of a court-ordered garnishment for dependent support, DFAS-HGA/CL will assess the document, delineating the member's legal obligations, and subsequently relay a garnishment (FID - HG) transaction to the automated garnishment system (AGS). A notification letter is promptly generated upon the processing of the HG transaction, notifying the member of the following: Receipt of a court-ordered garnishment Terms and conditions of the garnishment Any necessary suppression actions Guidance on halting allotments No transaction input from the FSO is necessary. All funds owed to uniformed personnel, including pays and bonuses, irrespective of duty status or component, which are categorized as compensation for employment, are liable to garnishment. For a comprehensive catalog of pays eligible for garnishment, refer to the DoDFMR Vol. 7A, subparagraph 410203. Unless governed by a lower maximum garnishment limitation under applicable State or local law, the highest portion of disposable earnings subject to legal process for any given pay period will not surpass: 50% of disposable earnings if providing support for dependents 60% if the member in question is not supporting a spouse or dependent child C O NT I NU E Fines and Forfeitures F IN E S F O R F E I T UR E S A fine is the result of a judgment or judicial sentence. It makes a member pecuniary liable to the United States for the amounts specified in the sentence. Fines are not self-executing. They are debts to the government until paid in cash by the member, collected by deduction from the member's current pay, or collected by deduction on settlement of a member's pay account at discharge. They are collected in one lump sum and are the lowest priority of all debts. While fines decrease the amount of pay an individual receives, they do not reduce the taxable wages of the member. F IN E S F O R F E I T UR E S A forfeiture means that specific pay and allowances are forfeited all together. In this case, the member’s pay is withheld for a duration specified by a judicial/non-judicial sentence (i.e., court martial or Article 15). Forfeitures only apply on or after the date they are effective. They are computed at the amount before taxes are deducted and reduce the taxable wages to the member. These debts take precedence over all other debts. If a judicial/non-judicial punishment also includes a rank reduction, the forfeiture computation will apply to the new pay grade. To locate these items in the MMPA, use FID E7 for court martials and E8 for non-judicial punishment. C O NT I NU E Allotments 00:37 An allotment is money deducted each payday from a member's pay and allowances (usually at the member's own request) for payment to another person or institution such as a bank or credit union. Allotments are used to pay support for dependents, insurance premiums, mortgage, rent payments and they even can be used to make investment contributions. Allotments are a good tool for managing your finances. In this lesson, we'll cover different types of allotments and what forms are considered substantiating documents. C O NT I NU E Allotments can be found on the MMPA using FID A. There are two types of allotments: discretionary and non-discretionary. Discretionary allotments are voluntary allotments initiated by the member and can directed to: A financial institution, mutual fund company, or investment firm where the service member is the owner of the account. If there are multiple accounts at the same financial institution, the payments must be combined into one allotment amount (Class S). Pay their dependents, relatives, or former spouse(s). (Class D) Pay mortgage or rent payment to a financial institution, mortgage company, realtor, or to a landlord (Class H). Contribute into the Savings Deposit Program (USSDP). Discretionary allotments are limited to six allotments max and can be started via myPay or by the FSO. Non-discretionary allotments are voluntary allotments initiated by the member and can be directed to: Privatized housing (Class A1). Charitable contributions (Class D). Loan repayment for government debts (Class T). Government insurance (Class N). Veterans Educational Assistance Program (Class S). Non-discretionary allotments cannot be started via myPay and there is no limit on the amount of non-discretionary allotments that can be established on one member’s pay record. The following documents can be used as substantiating documents when processing allotments at the FSO: DD Form 2558, Authorization to Start, Stop, or Change an Allotment Standard Form (SF) 1199A, Direct Deposit Sign-Up Form Form 2159, Payroll Deduction Agreement AF Form 2561, AF Assistance Fund CFC Pledge Form PRO-TIP: When an allotment is started after mid-month cut off, it will collect the full allotment amount from a member's end-of-month paycheck. Otherwise, it will always collect half out of a member's mid-month pay and the remaining half out of the end-of-month pay. Only then will it show deposited into the account intended. That means that when the half for mid-month gets collected from their pay, they will NOT see that "half amount" deposited anywhere. This is a common question customers have since they cannot see where the half has gone, they just know it's been taken out of that 15th's check. How many discretionary allotments can a member have at one time? 3 5 15 6 SUBMIT Complete the content above before moving on. True or False. A member can only have two non-discretionary allotments established on their pay record.

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