R 251727Z JAN 13

ALCGPSC 012/13
SUBJ: 2013 MILITARY PAY CHANGES AND SOCIAL SECURITY WITHHOLDING TAX
INCREASE
1. Coast Guard military personnel are affected by recent changes to
tax law contained within the 2013 National Defense Authorization Act.
Social Security withholding taxes were 4.2 percent during the payroll
tax holiday over the last two years, but they return to the normal
rate of 6.2 percent in 2013.
2. Other 2013 changes affecting military personnel include:
A. Basic Pay increase of 1.7 percent.
B. Basic Allowance for Subsistence (BAS) increase of 1.1 percent.
C. Basic Allowance for Housing (BAH) increases.  The average BAH
increase is approximately 4 percent but actual amounts depend on
grade, location, and whether the member is with or without
dependents.  2013 BAH information can be found by going to the BAH
link at the Defense Travel Management Office website
http://www.defensetravel.dod.mil/site/bahCalc.cfm.
3. 2013 military pay and allowance information is available on the
USCG Pay and Personnel Center (PPC) website at
http://www.uscg.mil/ppc/rates.asp.
4. All hands are encouraged to review your January leave and earnings
statement for awareness regarding how these changes affect your pay.
5. RDML Dave Callahan, Commander, CG Personnel Service Center, sends.
6. Internet Release authorized.