TN 3 (11-94)

A. Introduction

1. Basic Pay

1. Coverage of basic pay began 1/1/57.

2. Inactive Duty Compensation

Inactive duty for reservists is covered 1/1/88 on. See RS 01404.205A.3.

3. Deemed Military Wages (DMW)

See RS 01701.001 for amounts of DMW and limits on crediting.

4. Wage Credits Before 1957

See RS 01701.001.

B. Background

1. Years After 1977

Wages of all uniformed service members for years after 1977 are reported on an annual basis in the usual manner.

2. Years Before 1978

For years before 1978:

1. Wages for members on active duty in the Army and Air Force and wages for commissioned officers of the Public Health Service and of the National Oceanic and Atmospheric Administration (NOAA) corps (formerly Environmental Science and Services Administration) were reported quarterly in the usual manner .

2. Wages for members on active duty in the Navy, Marine Corps, and Coast Guard were reported semiannually with a quarterly breakdown.

3. Wages for Army and Air Force reservists and members of the National Guard were reported quarterly .

4. Wages for reservists of the Navy, Marine Corps, and the Coast Guard were reported semiannually with a quarterly breakdown.

C. Policy

1. EIN Use

Both civilian and military employees are sometimes reported under the same Employer Identification Number (EIN), but the service distinguishes them from one another on Form W-3.

2. Inactive Reserve Duty

Such duty will be distinguished by:

1. a separate EIN and/or

2. four W's (WWWW) in the “establishment” field of the Form W-3's.

   NOTE: This should show on the DEQY.

D. References

Guidance on evaluating Forms W-2/W-2c's for uniformed services, RS 01403.041A.7. and RS 01403.042A.1.