Government employees will start seeing U.S. Social Security deductions on their Nov. 2 paycheck, covering Oct. 7 to 20, bringing a sigh of relief to at least some employees on Capital Hill who thought the membership into the federal program did not go through.
Press secretary Angel Demapan said yesterday there is a two-week lag time in payroll, so next payday is the first full pay period of the new fiscal year.
Starting on their Nov. 2 paycheck, government employees will see a tax deduction of 4.2 percent of their gross salary for Social Security.
The 4.2 percent is the current employee rate under the Social Security program.
Beginning in calendar year 2013, the employee rate will increase to 6.2 percent unless U.S. Congress extends the lower rate of 4.2 percent.
The employer contribution is 6.2 percent of the employee’s salary, paid on the employee’s behalf.
Upon completing enough quarters of service and reaching the required age for retirement, government employees may become eligible for Social Security benefits.
The CNMI government moved to re-enter the Social Security program amid the financial crisis plaguing the NMI Retirement Fund.
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