THE BASIS FOR SOCIAL SECURITY BENEFITSWritten by Jinky C. Mesias
There are certain bases which Social Security use in order to determine amount of benefits to be released for each of their member. The Social Security Benefit is based on factors such as date of birth of members, type of benefit applied for, amount of earnings and length of employment. All these factors are considered in determining Social Security Benefits and Medicare benefits.
Other bases for determining Social Security Benefits are so-called Social Security Credits. As members of Social Security you get credit points for your earnings. $900 in earnings can earn a member one credit. A member has chance to earn up a maximum of four credits in a year. However, amount of earnings needed to obtain one credit is not a constant that is why every year there is an increase for amount of earnings required for one credit. The most number of credits required is forty which is about ten years to accumulate. These credits are needed in order for a member to become eligible for benefits. The disability and survivor benefits usually require a much lower number of credits.
However, extra credits obtained during your working lifetime, does not in any way indicate that members are to receive additional benefits. Nonetheless, an increase in your Social Security contribution may increase your benefits. For those who may have queries and may want to know your detailed estimate of your Social Security Retirement, Disability and Survivorship Benefits you may try to visit or call Social Security Administration. You may be made to fill up a Personal Earnings and Benefit Estimate Statement. This statement is available by completing and submitting a form SSA-7004 to Social Security Administration. The Social Security in return would just mail to you your requested statement.
SOCIAL SECURITY IN FOCUSWritten by Jinky C. Mesias
Just what is Social Security? Social Security is an agency directed to provide benefits that would act as a safety net for all citizens covered by it. Social Security is not only concerned with retirement benefits for its members alone but also covers those who are disabled, dependent for support upon members of Social Security, widow and widower, a child of a member or a beneficiary of a member who died but who is entitled to receive a benefit. However, benefits to be given depend on whether you satisfy all requirements set by Social Security.
The Social Security operates in this manner: would-be members are required to work and to pay their Social Security contributions. And when they retire Social Security provide them with their retirement benefits. Likewise, in cases wherein members became disabled they are also entitled to receive disability benefits. Not only that, their spouse and their children are also to receive monthly benefits.
All of you must be wondering just how much you are to pay in order to receive all aforementioned benefits. There is a standard set by Social Security for which members are to follow. For members who are employed, 6.2% of your wages is with held; your employer is also to share 6.2% matching contributions. Your employer is tasked of depositing withholding for your social security benefits. And also there is an additional 1.45% withheld from your wages and also a 1.45% matching contribution from your employer. The additional deductions from your wages are intended to cover your Medicare Benefits. The total deduction of Social Security from your wages is 7.65%.