Monday, May 16, 2022

What Is Social Security Administration

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Social Security Administration Services

What is My Social Security?

The SSA has seen numerous name changes and operational revisions during the course of its existence as different administrations have shaped the agency. The SSA provides a wide range of services, including determining citizen eligibility and premium payments for the Medicare program. It administers the granting of Social Security numbers , which have;become a de facto national identification number that must be provided to access numerous services, such as credit,;insurance coverage,;and even hunting licenses.

Due to the COVID-19 pandemic, all local Social Security offices are closed for walk-in service, though in-person appointments can be scheduled by phone in advance for some situations.

Fraud In The Acquisition And Use Of Benefits

Given the vast size of the program, fraud sometimes occurs. The Social Security Administration has its own investigatory unit to combat and prevent fraud, the Cooperative Disability Investigations Unit . The Cooperative Disability Investigations Program continues to be one of the most successful initiatives, contributing to the integrity of SSA’s disability programs. In addition when investigating fraud in other SSA programs, the Social Security Administration may request investigatory assistance from other federal law enforcement agencies including the Office of the Inspector General and the FBI.

Social Security Administration: Annual Report

Every year the boards of trustees of Social Security and Medicare issue a report on the current and projected financial status of the two programs. Per the 2020 report, Social Securitys program costs will exceed its income in 2021, at which point the program will have to start dipping into its nearly $3 trillion trust fund. The Old-Age and Survivors Insurance Trust Fund is projected to be depleted by 2034; the Disability Insurance Trust Fund is projected for depletion by 2065. Combined OASDI depletion would occur in 2035.

The report recommends that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them and predicts that with informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations.

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Tax On Social Security Benefits

You may have to pay taxes on your Social Security benefit, depending on your income level. If your retirement income is over a certain amount, then part of your Social Security benefits may be taxable.

Single-filers with an income between $25,000 and $34,000 will have to pay income tax on up to 50% of their benefits. If they make more than $34,000, then up to 85% of the benefits may be taxable.

Keep this in mind when filing your tax return. You may also be able to withhold your taxes from your Social Security benefits payments, so you arenât stuck with a large tax bill on Tax Day. Check your SSA account online or visit your local Social Security office for more information.

The Daily Journal Of The United States Government

Is the Times Wising Up On Social Security?
Legal Status

This site displays a prototype of a Web 2.0 version of the daily Federal Register. It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPOs govinfo.gov.

The documents posted on this site are XML renditions of published Federal Register documents. Each document posted on the site includes a link to the corresponding official PDF file on govinfo.gov. This prototype edition of the daily Federal Register on FederalRegister.gov will remain an unofficial informational resource until the Administrative Committee of the Federal Register issues a regulation granting it official legal status. For complete information about, and access to, our official publications and services, go to About the Federal Register on NARA’s archives.gov.

Legal Status

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Social Security’s Customer Service Challenges

We have some challenges, as everybody knows, in delivering the proper service to our customers, Saul told AARP in February 2020. The 800 number, that has been a major problem, major concern for all our customers. If you called in, you would find you had an unacceptable waiting time sometimes thirty minutes, sometimes forty minutes.

To his credit, Saul announced plans to attack the problem when he took the job last year, calling improved customer service his top priority. Since then, he brought on 500 teleservice reps, which he told AARP cut down call time by about 50%.

He said another 500 phone reps would be hired later this year, though that was before the pandemic. In February, he told AARP: I think if you watch over the next six months, we will get the call centers down to the proper waiting time, which will be close to zero. That’s a prediction that I’m willing to make here, and I believe we will succeed in doing this

Whether that prediction will come true given how the world of work has changed due to the coronavirus is anyones guess.

In January, Saul also reversed a 2012 decision to close Social Security offices at noon on Wednesdays. From then until the coronavirus shutdown, all its offices were open 9 a.m. to 4 p.m. weekdays.

What If I Continue Working In My 60s

Many people whose health allows them to continue working in their 60s and beyond find that staying in the workforce keeps them young and gives them a sense of purpose. If this sounds like something youâd like to do, know that working after claiming early benefits may affect the amount you receive from Social Security. Why? Because the Social Security Administration wants to spread out your earnings so you donât outlive them. If you claim Social Security benefits early and then continue working, youâll be subject to whatâs called the Retirement Earnings Test.

If youâre between age 62 and your full retirement age, and youâre claiming benefits, you need to know about the Earnings Test Exempt Amount, a threshold that changes yearly. For 2021, the Retirement Earnings Test Exempt Amount is $18,960/year . If youâre in this age group and claiming benefits, then every $2 you make above the Exempt Amount will reduce by $1 the Social Security benefits you’ll receive.

Contrary to popular belief, this money doesnât disappear. It gets credited back to you – with interest – in the form of higher future benefits. You may hear people grumbling about the Social Security âEarnings Taxâ, but itâs not really a tax. Itâs a deferment of your benefits designed to keep you from spending too much too soon. And after you hit your full retirement age, you can work to your heartâs content without any reduction in your benefits.

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Social Security Benefits During The Pandemic

Payments to the 69 million-plus Social Security beneficiaries wont be affected by the field-office shutdown. And field offices will continue offering in-person assistance in what the agency calls dire circumstances such as helping people with severe disabilities, blindness or terminal illnesses. Youll need to call the local office in advance to arrange for these meetings.

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Social Security Number Theft

Is the Social Security Administration trying to call you too?

Because Social Security Numbers have become useful in identity theft and other forms of crime, various schemes have been perpetrated to acquire valid Social Security Numbers and related identity information.

In February 2006, the Social Security Administration received several reports of an email message being circulated addressed to “Dear Social Security Number And Card owner” and purporting to be from the Social Security Administration. The message informs the reader “that someone illegally is using your Social Security number and assuming your identity” and directs the reader to a website designed to look like Social Security’s Internet website.

“I am outraged that someone would target an unsuspecting public in this manner,” said Commissioner Jo Anne B. Barnhart. “I have asked the Inspector General to use all the resources at his command to find and prosecute whoever is perpetrating this fraud.”

Once directed to the phony website, the individual is reportedly asked to confirm his or her identity with “Social Security and bank information”. Specific information about the individual’s credit card number, expiration date and is then requested. “Whether on our online website or by phone, Social Security will never ask you for your credit card information or your PIN,” Commissioner Jo Anne B. Barnhart reported.

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How Are Social Security Benefits Funded

All employees, employers, and self-employed individuals in the United States pay payroll taxes that fund the benefits that the Social Security Administration provides. All workers pay a 6.2% payroll tax on the first $137,700 of their income. Employers have to match the 6.2% that their employees pay.

The tax works a little differently for self-employed individuals. Since those individuals are both the employer and the employee in their business, they are responsible for paying both parts of the tax, which amounts to a 12.4% tax on the first $137,700 of their income.

Just about everyone has to pay the Social Security payroll tax. There are only a few exceptions, including religious groups who are opposed to receiving Social Security benefits, foreign students, and foreign government employees. Anyone who doesnt pay Social Security taxes is also not eligible to receive Social Security benefits later in life.

Woodlawn Volunteer Fire Company

The Woodlawn Volunteer Fire Company was founded in 1941 as a civil defense unit. At the conclusion of World War II, the fire company incorporated and began to provide fire suppression and ambulance service to the community. The fire house is currently located on Woodlawn Drive near Windsor Mill. It is one of 33 volunteer fire companies in Baltimore County. The County Fire Department comprises 26 “career” fire companies and 33 volunteer companies.

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What To Do If Your Benefits Are Already Being Withheld

If youre subject to the Social Security earnings limit, dont wait for the SSA to start reducing the benefit you receive. Instead, Id recommend voluntarily suspending benefits.

If you wait for the Social Security Administration to discover that youve earned too much working while receiving benefits, your risk of an overpayment notice is higher.

Either way, you arent missing payments that youll never get back. Your benefit amount will be recalculated at your full retirement age to reflect the months that benefits were withheld.;

The best way to avoid the earnings limitation is to wait until full retirement age to file for benefits. If you cant wait, make sure you have a clear understanding of how working impacts your Social Security benefits.

If you still have questions, you could leave a comment below, but what may be an even greater help is to join my . Its very active and has some really smart people who love to answer any questions you may have about Social Security. From time to time Ill even drop in to add my thoughts, too.;

You should also consider joining the 295,000+ subscribers on my YouTube channel! For visual learners , this is where I break down the complex rules and help you figure out how to use them to your advantage.;

Tips For Retirement Planning

Social Security Administration Seal Wooden Plaque ...
  • Saving is important. But you likely cant stow away enough to last all of your golden years. Youll need your savings to grow through investments. For help with this, contact a financial advisor. Our free matching tool will put you in touch with three fiduciary advisors who fit your needs.
  • Taxes can take a big chunk out of your retirement income, depending on where you live. To find out if you should relocate after you hang up your hat, check our story on the best states to retire for taxes.

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Relationships Between State And Federal Courts

Separate from, but not entirely independent of, this federal court system are the court systems of each state, each dealing with, in addition to federal law when not deemed preempted, a state’s own laws, and having its own court rules and procedures. Although state governments and the federal government are legally dual sovereigns, the Supreme Court of the United States is in many cases the appellate court from the State Supreme Courts . The are by this doctrine the final authority on the interpretation of the applicable state’s laws and Constitution. Many state constitution provisions are equal in breadth to those of the U.S. Constitution, but are considered “parallel” .

A State Supreme Court, other than of its own accord, is bound only by the U.S. Supreme Court’s interpretation of federal law, but is not bound by interpretation of federal law by the federal court of appeals for the federal circuit in which the state is included, or even the federal district courts located in the state, a result of the dual sovereigns concept. Conversely, a federal district court hearing a matter involving only a question of state law must apply the substantive law of the state in which the court sits, a result of the application of the ; however, at the same time, the case is heard under the , the and the instead of state procedural rules . Together, the laws of the federal and state governments form .

Claim That It Is A Ponzi Scheme

Critics have drawn parallels between Social Security and Ponzi schemes, arguing that the sustenance of Social Security is due to continuous contributions over time. One criticism of the analogy is that while Ponzi schemes and Social Security have similar structures , they have different transparencies. In the case of a Ponzi scheme, the fact that there is no return-generating mechanism other than contributions from new entrants is obscured whereas Social Security payouts have always been openly underwritten by incoming tax revenue and the interest on the Treasury bonds held by or for the Social Security system. The sudden loss of confidence resulting in a collapse of a conventional Ponzi scheme when the scheme’s true nature is revealed is unlikely to occur in the case of the Social Security system. Private sector Ponzi schemes are also vulnerable to collapse because they cannot compel new entrants, whereas participation in the Social Security program is a condition for joining the U.S. labor force. In connection with these and other issues, Robert E. Wright calls Social Security a “quasi” pyramid scheme in his book, Fubarnomics.

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Total Benefits Paid By Year

Year

Workers in Social Security covered employment pay FICA or SECA taxes and earn quarters of coverage if earnings are above minimum amounts specified in the law. Workers with 40 quarters of coverage are “fully insured” and eligible for retirement benefits. Retirement benefit amounts depend upon the average of the person’s highest 35 years of “adjusted” or “indexed” earnings. A person’s payroll-taxable earnings from earlier years are adjusted for economy-wide wage growth, using the national average wage index , and then averaged. If the worker has fewer than 35 years of covered earnings these non-contributory years are assigned zero earnings. The sum of the highest 35 years of adjusted or indexed earnings divided by 420 produces a person’s Average Indexed Monthly Earnings or AIME.

The AIME is then used to calculate the Primary Insurance Amount or PIA. For workers who turn 62 in 2021, the PIA computation formula is:

90 percent of the first $996 of average indexed monthly earnings, plus

32 percent of average indexed monthly earnings between $996 and $6,002, plus

15 percent of average indexed monthly earnings over $6,002

Monthly benefit amounts are based on the PIA. Once the PIA is computed, it is indexed for price inflation over time. Thus, Social Security monthly benefit amounts retain their purchasing power throughout a person’s retirement years.

Tax On Wages And Self

Government shutdown: Social Security Administration workers work day and paycheck uncertain

Benefits are funded by taxes imposed on wages of employees and self-employed persons. As explained below, in the case of employment, the employer and employee are each responsible for one half of the Social Security tax, with the employee’s half being withheld from the employee’s pay check. In the case of self-employed persons , the self-employed person is responsible for the entire amount of Social Security tax.

The portion of taxes collected from the employee for Social Security are referred to as “trust fund taxes” and the employer is required to remit them to the government. These taxes take priority over everything, and represent the only debts of a corporation or LLC that can impose personal liability upon its officers or managers. A sole proprietor and officers of a corporation and managers of an LLC can be held personally liable for non-payment of the income tax and social security taxes whether or not actually collected from the employee.

A separate payroll tax of 1.45% of an employee’s income is paid directly by the employer, and an additional 1.45% deducted from the employee’s paycheck, yielding a total tax rate of 2.90%. There is no maximum limit on this portion of the tax. This portion of the tax is used to fund the Medicare program, which is primarily responsible for providing health benefits to retirees.

The Social Security tax rates from 1937â2010 can be accessed on the Social Security Administration‘s website.

Wages not subject to tax

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Social Security Eligibility Requirements

In order to be;eligible for Social Security benefits, you must earn at least 40 credits, which works out to 10 years. That means you have to pay income taxes for at least 10 years to receive a Social Security check when you retire.

How much will your Social Security check be for? The;Social Security Administration uses a formula that takes into account your highest earnings for 35 years. The result is called your primary insurance amount, which, in turn, represents what your benefits will be once you reach your full retirement age .;Your FRA depends on when you were born:

Full Retirement Age
1960 and later67 years old

Dont be fooled by the term full retirement age, though. Just because youve reached your FRA doesnt mean your benefits are at their maximum level. In fact, you have to retire at 70 to get the maximum. Generally, for every year you delay retiring after your FRA and until you reach 70, your benefit increases 3% to 8%, depending on the year you were born.

On the flip side, every year you retire before your FRA, starting at 62, reduces your benefit. So that retiring at 62 will reduce your benefit by 30%.

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