what is social security
it is also known as Old Age, Survivors, and Disability Insurance (OASDI), was signed into law in 1935 by president Roosevelt as part of the social security act. It was established during the great depression to assist the masses of people who could not af
who is not covered by social security
1. most federal employees hired before 1984 who are covered by Civil Service Retirement or another similar plan.
2. Approximately 25% of state and local government employees who are covered by a state pension program and elect not to participate in the so
a person must be insured under the social security program in order for what
for survivors, disability or retirement benefits to pay.these benefits are based on how long a covered worker has worked throughout his life
what are the 2 types of social security statuses
1. fully insured
2. currently insured
full insured status
a covered worker must accrue a total of 40 quarters of credit, which is about 10 years of work.
currently insured status
a worker must have earned 6 credits during the last 13 quarter period, to be eligible for limited survivor benefits.
how is social security funded
from FICA payroll taxes, from employers, employees and self-employed individuals
taxable wage base
FICA tax is applied to an employee's income up to a certain income amount this is called (fill in)
Medicare Part A taxes are
not subject to a maximum taxable wage cap
what amount is indexed to the national average wage index
the maximum amount of earnings that can be subject to social security tax each year. this applies to employers, employees, and self employed
social security benefits are subject to federal income tax if what
if the beneficiary files an individual tax return and his annual income is greater than 25,000.
joint filers will pay federal income tax on their social security benefits is what
if their income is greater than 32,000
what is the amount of social security benefits based on for a person
the individuals average monthly wage during his working years
the primary insurance amount(PIA) does what
determines the full amount of retirement benefits for an eligible person at age 65. is based on the average earnings over your lifetime
if a worker retires early for example at age 62 his retirement benefits will be what
will be 80% of his PIA and will remain lower for the covered workers life.
social security survivors benefits or death benefits
pay a lump sum death benefit or monthly income to survivors of deceased covered workers
survivors benefits
include a 255 lump sum death benefit, surviving spouse benefits, child benefit, and parents benefit
social security disability benefits
are only available to covered workers who are fully insured at the time of the disability. Disability income benefits are paid to the covered worker in the amount of the PIA after a 5-month waiting period. Social Security disability benefits are only avai
definition of disability
In order to be considered totally disabled, an individual has to qualify according the following requirements:
� The inability to engage in any gainful work that exists in the national economy
� The disability must result from a medically determinable phy
retirement benefits
benefits are only available to covered workers who are fully insured upon retirement. Benefits are paid monthly. If a covered worker retires at the normal retirement age, he will receive 100% of the PIA. However, if a covered worker retires early at the a
Black-out period
benefits paid to the surviving spouse of a deceased person who was receiving Social
Security. The "black-out period" begins when Social Security survivorship benefits cease. This is when
the youngest child turns 16 years old, or if no children- immediatel
all of these are considered to be a benefit under social security except for?
unemployment
to be eligible for social security disability benefits an employee must be unable to perform?
any occupation
q is severely injured in a car accident and becomes totally disabled. how many months must q be disabled before being able to apply for social security disability benefits?
5 months
what determines the full amount of social security retirement benefits a qualified individual is entitled to receive?
primary insurance amount (PIA)