With the next military payday on Tuesday, 15 January 2013, many military members will see their pay deposited into their bank accounts over the next few days. Nearly everyone is going to have different pay from last month, due to changes in base pay rates, Basic Allowance for Subsistence (BAS) , Basic Allowance for Housing (BAH), and payroll taxes. Without a Leave and Earnings Statement until the end of the month, servicemembers will have to estimate whether their pay is right.
The increase in BAS and 1.7% pay raise received by all active duty military folks will be just about offset by the 2% increase in Social Security Payroll Taxes. Therefore, most increases or decreases in pay will be the result of changes in BAH.
While it is a little frustrating to see the entire pay raise taken up by the increase in taxes, I am thankful that the raise is there. Otherwise, we’d all be seeing our paychecks go down by 2%. That would be even more lousy than having them stay just about the same.
Questions? Ask ’em in the comments.