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Is military differential subject to FICA withholding? How does this affect my social security benefits?

social security benefits Military Differential Pay
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Tax Professional Answers

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Steven Potts JD EA IAR
For purposes of Social Security coverage, section 209(a) of the Act defines wages as “remuneration…for employment” and section 210(a) defines employment (in part) as “any service…performed…by an employee for his or her employer.” Since reservists on active military duty are not performing services for their civilian employers, payments made to them by those employers are not considered remuneration for employment. Therefore, military differential or supplemental pay is not wages for Social Security purposes.

A person who is on active military duty will be accruing social security benefits from his military service. This will include the number of quarter worked requirements. The differential pay will not add to the social security benefits the individual will be eligible for in the future.
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