Military Pay: The Defense Finance and Accounting Service-Indianapolis Could Improve Control Activities over Its Processing of Active Duty Army Military Personnel Federal Payroll Taxes

reportActive / Technical Report | Accession Number: ADA500693 | Open PDF

Abstract:

The Department of the Army paid about 4.7 billion in federal payroll taxes for approximately 638,900 active duty military servicemembers for calendar year 2007, from the active duty Army military personnel appropriation. The Secretary of the Army relies on the Defense Finance and Accounting Service-Indianapolis DFAS-IN for processing and accounting support in paying the taxes for active duty servicemembers.1 This support includes calculating and reporting federal payroll taxes for active duty Army servicemembers to the Internal Revenue Service IRS and paying those taxes to the Department of the Treasury. Federal payroll taxes are amounts withheld from employees wages for federal income taxes, Social Security, and Medicare Hospital Insurance2 taxes, as well as the employers mandatory matching contributions for Social Security and Medicare taxes. GAOs five standards of internal control3 provide the overall framework for establishing and maintaining internal control in the federal government. These standards help management identify and address major performance and management challenges and areas at greatest risk of fraud, waste, abuse, and mismanagement.

Author(s):
No Author(s) Identified
Author Organization(s):
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
Descriptive Note:
Congressional rept.
Pagination:
0019

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release
Distribution Statement:
Approved For Public Release; Distribution Is Unlimited.

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
GAO-09-557R
Monitor Series:
GAO
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_5.6_Monitor; JCA_5.3_Planning; JCA_5.6.4_Assess Guidance; JCA_5.6.3_Assess Achievement of Objectives; JCA_5.5_Direct; JCA_1_Force Support; JCA_1.3_Human Capital Management; JCA_1.3.2_Personnel Management; JCA_5.5.1_Communicate Intent and Guidance; JCA_6.4.1_Secure Information Exchange; JCA_5.3.3_Develop Strategy; JCA_5.3.4_Develop Courses of Action; JCA_5.3.5_Analyze Courses of Action; JCA_6.4_Information Assurance; JCA_6_Net Centric; JCA_1.2.5_Lessons Learned; JCA_5.5.3_Establish Metrics; JCA_8_Building Partnerships; JCA_8.1.1_Inform Domestic and Foreign Audiences; JCA_8.1_Communicate
Communities of Interest:
No COI(s) Identified
Descriptor(s):
*SALARIES, *TAXES, ARMY PERSONNEL, MEDICARE, INCOME, SOCIAL SECURITY, ACCOUNTING, UNITED STATES GOVERNMENT, ACTIVE DUTY
Field(s)/Group(s):
Economics and Cost Analysis
Keyword(s):
GAO REPORTS, DFAS IN(DEFENSE FINANCE AND ACCOUNTING SERVICE INDIANAPOLIS)
Report Date:
2009 Jun 18
Creation Date:
2009 Jul 08