Uniformed Services Differential Pay Protection Act

This bill aims to protect the income and retirement benefits of military reservists and National Guard members when they are called to active duty. It would require the IRS to treat "differential wage payments"—the money some employers pay to bridge the gap between a worker’s civilian salary and their lower military pay—as standard taxable wages. By doing so, the bill ensures these service members can continue contributing to their employer-sponsored retirement plans, such as 401(k)s, just as they would if they were still working at their civilian jobs.