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It’s All About the Money: Social Security and Your Future

It’s All About the Money: Social Security and Your Future. Jeanne Tyler Social Security Administration Boise (208) 321-2918 Jeanne.M.Tyler@ssa.gov. What Is Social Security?. Social Insurance Replaces Income Lost Due To: Retirement Disability Death Medicare Covers 96% Of All Workers

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It’s All About the Money: Social Security and Your Future

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  1. It’s All About the Money: Social Security and Your Future Jeanne Tyler Social Security Administration Boise (208) 321-2918 Jeanne.M.Tyler@ssa.gov

  2. What Is Social Security? • Social Insurance • Replaces Income Lost Due To: • Retirement • Disability • Death • Medicare • Covers 96% Of All Workers • Not Designed To Be Sole Source Of Income

  3. Who Is Eligible? • Retirement Benefits • Age 62 • Full Retirement Age • Insured • Ten Years Of FICA Covered Work • Disability Benefits • Insured • Depends Upon Age At Which Disabled • Disabled • Strict Standard

  4. Who Is Eligible? • Survivor Benefits • Insured • Depends Upon Age At Which Worker Died • Minor Children • Limited Eligibility With Adult Children • Widow/Widower • Age 60 • Age 50, If Disabled • Any Age, If Child In Care

  5. Who Is Eligible? • Dependents Of Living Beneficiaries • Minor Children • Limited Eligibility For Adult Children • Spouse • 62 • Any Age, If Child In Care • Over 49 Million Beneficiaries • Over $47 Billion Paid Monthly

  6. When Can I Retire? • Full Retirement Age • 65 To 67 • Depends Upon Year Of Birth • Reduced Benefits • As Early As Age 62

  7. How Much Will I Get? • Benefit Based On Adult Average Earnings • Retirement Benefit Uses 35 Highest Years • Index Earnings To Bring To Current Value • Formula Weighted For Low Earners

  8. Current Benefit Averages • Retired • $1050/Month • Disabled • $978/Month • Survivor • $994/Month • Social Security Statement • Online Benefit Planners

  9. What If I Keep Working? • Retirement Benefits May Be Reduced If Under FRA • Year of FRA • Reduced $1 for $3 If Exceed $34440 • Years Before FRA • Reduced $1 for $2 If Exceed $12960 • Only Wages or SE Counts • No Reduction If Work After FRA

  10. Accuracy Is Critical • W2 Data Is Key To Correct Benefit Decision • Wage Amounts • Employee Name and SSN

  11. What Do I Do In Payroll? • Ask To See SSN Card At Hire • Don’t Change Name Until See Corrected SSN Card • Use SSNVS • Recognize That Employee May: • Not Be Able To Get Replacement SSN Card • Take Longer To Get Replacement SSN Card

  12. Detecting Good SSNs • Card Quality • Printing • Columns • None Begin With 8 Or 9 • Truncated Surname

  13. How To Verify The SSN • Social Security Number Verification Service (SSNVS) • www.socialsecurity.gov/employer • Register • PIN And Password, Role • Employer Notified • Online (10) Or File Upload (250,000) • Need Name And SSN • DOB And Gender Optional

  14. How SSNVS Works • Only States If Name & Social Security Number Match SSA’s Records • Gives Death Indicator • Cannot Be Used For Prehiring Screening • Don’t Use To Take AdverseAction Against An Employee

  15. E-Verify (Basic Pilot) • Dept. Of Homeland Security And SSA • Voluntary • Nationwide • Web-based • Confirms Name & SSN And I-9 Information • Verify All New Hires • To Enroll, Contact DHS • (888) 464-4218

  16. Reporting Challenges • No SSN Issued Yet • Can Work If Meets I-9 Standards • Can’t Withhold Wages • W-2: All Zeros/”Applied For” • W2C to Report SSN When Received • W2C To Correct Name Or SSN Errors

  17. ITIN • Individual Taxpayer Identification Number • 9xx-7x-xxxx • 9xx-8x-xxxx • Non-citizen ID Number For Tax Filing of Non-work Income • Not Valid For U.S. Employment • Apply For ITIN On IRS Form W-7

  18. ITIN or “Bad” SSN on W-4? • Request Correct SSN From Employee • If No SSN Available By W-2 Time • Do Not Change SSN To Zeroes • Do Use W-4 SSN On W-2 • File W-2c If Get SSN Later

  19. What Does the Future Hold? • Change • Always A Constant with SS • Long Term Solvency • Insufficient Revenue/Investment Income After Mid-century • Consequence Of Demographics • Political Solutions • Immigration Reform • Mandatory Verification?

  20. Resources • Basic SS Eligibility • www.socialsecurity.gov • Employer Issues • www.socialsecurity.gov/employer • SSNVS • www.socialsecurity.gov/employer/ssnv.htm • EEV-USCIS • www.uscis.gov

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