Archive for June 2013
Social Security Disability Insurance is just that, insurance. Just like any insurance you pay a premium and you expect to get a benefit. Working people in the United States are obligated to pay the insurance premium when we work for an employer. The premium you pay is 6.2% (limited). Additionally, your employers will also kick in %6.2 (limited) on your behalf as well. This is 12.4% of your gross income going into the federal government’s trust fund. These are your payments into the system and it’s a lot of money. Here are the rules for how we pay into the system. This is right from Social Security Website: Social Security & Medicare Rates
When you have wages or self-employment income covered by Social Security, you pay Social Security taxes each year up to a maximum amount set by law. For 2013, you will pay Social Security taxes on income below $113,700. You must pay Medicare taxes on all income. Also, beginning in 2013 you must pay 0.9 percent more in Medicare taxes on earned individual income of more than $200,000 ($250,000 for married couples filing jointly). The tax rates shown below do not include the 0.9 percent:This is a lot of money. SSDI is not welfare. You have paid for the benefits and you have the right to make a claim. It is important to understand how much you paid into Social Security in your entire lifetime or working. It is all online and it is called a Social Security Statement.You can get a copy of your Social Security Statement at the link below. SSA Account Page In it you will find all sorts of information like your estimated benefits, your earnings record, how much you have paid in, and more. Check it out and see another post on Date Last Insured to figure out why this report can be so important. Getting the online statement accomplishes two things. First, you have access to your earnings and benefit records from the Social Security Administration. Second, your representative has one more piece of the puzzle in building up your claim.
- Employees — the Social Security tax rate is 6.2 percent on income under $113,700 through the end of 2013. The Medicare tax rate is 1.45 percent of all income;
- Employers — the Social Security tax rate is 6.2 percent. The Medicate tax rate is 1.45 percent; and
- Self-employed —the Social Security tax rate is 12.4 percent on income under $113,700 through the end of 2013. The Medicare tax rate is 2.9 percent.