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: Pension expense is a cost associated with providing employees with retirement benefits. It includes employer contributions to pension plans and the current service cost, which is the cost of providing pension benefits for the current year. There are two main types of pension plans: defined benefit plans and defined contribution plans. Defined benefit…
Key Takeaway: The initial investment to build a state-of-the-art call contact center varies depending on various factors, such as the location, real estate cost, technology and equipment, human resource, and training cost. Proper analysis and evaluation of these factors can help companies determine how much the initial investment will be. The location and real estate…
Key Takeaway: Human capital investment refers to the development and enhancement of an individual’s skills, knowledge, and abilities to increase their productivity and value to an organization. Investing in human capital can yield many benefits such as improved job performance, increased innovation and creativity, higher employee retention rates, and greater overall organizational success. To effectively…
Key Takeaway: Tax deferred pension plans can be found on IRS Form 1040 in the sections labeled “IRA Deduction” and “Pensions and Annuities”. Employer-sponsored plans include 401(k)s and 403(b)s, and are offered by many employers. Individual retirement accounts (IRAs) can be opened by individuals. Retirement savings plans include traditional and Roth IRAs, SEP plans, and…
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: When receiving pension income, you may be subject to income tax. The amount of tax you pay depends on your total income and your personal allowance. There are different types of pension income, such as state pension, occupational or personal pension, and annuities, that may be subject to different tax rates and rules….
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…
Key Takeaways: The amount of an NFL pension depends on a variety of factors, including years of service, age at retirement, and the amount contributed to the pension plan. It also varies depending on whether the player retired before or after 1993. The average NFL pension is around $43,000 per year, but this amount can…