For people born in 1960 or later, the complete retirement age is sixty seven. For these born before then, the retirement age may be lower by a number of months. The Social Security program is funded primarily via dedicated payroll taxes called Federal Insurance Contributions Act tax (FICA).
Workers who earn $30,000 per yr pay payroll taxes on all of their revenue, as a result of the wage base restrict on Social Security taxes is sort of 4 occasions that quantity. Your employer can pay the identical quantity to the federal authorities, because the regulation imposes an equal tax on employers as properly. Social Security Disability Insurance is funded via payroll taxes.
This funding methodology has not modified because the program’s inception. Form SSA-7161 and/or SSA-7162 are mailed from the Social Security office in Wilkes-Barre, Pennsylvania.
As the challenges to meet the needs of hundreds of thousands of retirees proceed, … Read More