Key Takeaway: The current state of Social Security is in a shortfall, with more money going out than coming in. This puts pressure on the system to find solutions to maintain benefits for future generations. Proposed solutions to the Social Security shortfall include increasing taxes, cutting benefits, adjusting the retirement age, adjusting cost-of-living adjustments (COLA),…
Key Takeaway: Social Security payroll deduction stops when you have reached the maximum taxable earnings for the year. For 2021, the maximum taxable earnings is $142,800. If you switch jobs or become self-employed, you may have to re-start your social security payroll deduction. It is important to keep track of your earnings and ensure that…
Key Takeaway: Social Security sends out the 1099 form in January of each year: Recipients can expect to receive their 1099 form either via mail or online in the “My Social Security” account. The 1099 form shows the total benefits received in the previous year: Social Security beneficiaries can use the form to prepare their…
Key Takeaway: The Social Security cap limits the maximum amount of earnings subject to Social Security taxes. For the year 2011, the cap was $106,800. The Social Security cap is designed to ensure that higher earners contribute to the Social Security program in proportion to their income. It also ensures that the program remains sustainable…
Key Takeaway: Section 216(i) of the Social Security Act is a provision that allows individuals who are 65 or older, or who become disabled before the age of 65, to receive benefits based on the earnings of a deceased spouse or ex-spouse. To be eligible for Section 216(i) benefits, the individual must have been married…
Key Takeaways: Social Security Number is required for verification purposes: Amazon Payments requires a Social Security Number to verify the identity of its users and to comply with government regulations. Amazon Payments prevents fraud and illegal activities: By collecting a Social Security Number, it helps to prevent fraudulent activities such as identity theft and money…
Key Takeaway: The Social Security rate is a tax that funds the Social Security program for retirement, disability, and survivor benefits. For 2021, the Social Security tax rate for employees is 6.2%, while the rate for self-employed individuals is 12.4%. To calculate Social Security tax, individuals should be aware of maximum taxable earnings, Social Security…
Image credits: retiregenz.com by David Washington Methods to verify social security number Verifying someone’s social security number? You need to authenticate it! How? Check out the “Methods to verify social security number”. This section provides three solutions – Verifying through Social Security Administration, Credit Bureaus, and Third-Party Services. Validate social security numbers easily with these…
Key takeaway: Changing your Social Security Number illegally is highly illegal and can result in severe consequences ranging from fines, imprisonment and loss of benefits. It is not worth the risk. One of the techniques used to change Social Security Number illegally is identity theft, where a person steals someone’s personal information to access their…
Key Takeaway: Understand the benefits of Social Security: Social Security provides retirement, survivor, and disability benefits, and it is important to know how each one works and what options are available to you. Maximize your benefits by timing, spousal benefits, and working while receiving benefits: Timing and spousal benefits can significantly impact your Social Security…
Key Takeaways: Social Security Employee refers to the employee’s contribution towards the Social Security program, which provides retirement, disability and survivor benefits. It is important to understand the Social Security Employee amount listed on your paystub as it affects your eligibility and calculation of benefits. Your Social Security benefits are calculated based on your average…