Department of Defense

Restructure Civilian PCS Travel Payments

Currently the PCS Travel function for Civilians is extremely overtaxed. Most of the travel is paid for by the civilian itself (already taxed money) and reimbursed at a later date. This reimbursement has taxes withheld just like a regular paycheck. Then every year come March & April the DoD-DFAS Civilian PCS Travel Department must spend thousands of man hours processing a particular claim called the "RITA claim."

 

The RITA claim is to give the employee a chance to recover the money that was taxed. So to date the civilians cash has been taxed twice. This RITA claim will pay back most of what was taxed with the reimbursement, but this RITA claim is taxed itself. So the civilians cash is taxed 3 times!

 

If we were to restructure the software system that we input Civilian PCS claims into to recognize a particular PCS travel claim as one that has already been taxed (the money used from the civilians bank account) then when reimbursed the system will not take any taxes for those claims.

 

This will have two major effects. The civilian will not need to pay taxes three times on money they earned (only the one time from their paycheck). But they will not need to spend a few hours filling out paperwork necessary for the RITA CLAIM, this will also reduce the number of RITA claims the Civilian PCS Travel department receives and has to process (currently thousands each year.) Finally there is no need for the thousands of man hours spent on each claim. With wages and benefits for the hourly PCS travel technician the average pay is $24/hour. With the required 28 claims to process daily with 4 claims an hour. That is a lot of savings for labor hours, saved taxes for people to spend at home, and saved personal time from doing the extra paperwork.

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Idea No. 5968