The 1.7 percent cost-of-living adjustment (COLA) will begin in January 2013 with benefits that more than 56 million Social Security beneficiaries receive. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2012.
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.
To read the full press release, click here.
Other important 2013 Social Security information follow:
Tax Rate:
|
2012
|
2013
|
Employee
|
7.65%*
|
7.65%
|
Self-Employed
|
15.30%*
|
15.30%
|
NOTE: The 7.65% tax rate is the
combined rate for Social Security and Medicare. The Social Security portion
(OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see
below). The Medicare portion (HI) is 1.45% on all earnings.
|
||
* The Temporary Payroll Tax Cut Continuation Act of 2011 reduced
the Social Security payroll tax rate by 2% on the portion of the tax paid by
the worker through the end of February 2012. The Middle Class Tax
Relief and Job Creation Act of 2012 extended the reduction through the end of
2012. Under current law, this temporary reduction expires at the end of
December 2012.
|
||
Maximum Taxable Earnings:
|
2012
|
2013
|
Social Security (OASDI only)
|
$110,100
|
$113,700
|
Medicare (HI only)
|
No Limit
|
|
Quarter of Coverage:
|
2012
|
2013
|
Earnings needed to earn one Social
Security Credit
|
$1,130
|
$1,160
|
Retirement Earnings Test Exempt Amounts:
|
2012
|
2013
|
Under full retirement age
NOTE:
One dollar in benefits will be withheld for every $2 in earnings above the
limit.
|
$14,640/yr.
($1,220/mo.) |
$15,120/yr.
($1,260/mo.) |
The year an individual reaches
full retirement age
NOTE: Applies
only to earnings for months prior to attaining full retirement age. One
dollar in benefits will be withheld for every $3 in earnings above the limit.
There is no limit on earnings
beginning the month an individual attains full retirement age.
|
$38,880/yr.
($3,240/mo.) |
$40,080/yr.
($3,340/mo.) |
Social Security Disability Thresholds:
|
2012
|
2013
|
Substantial Gainful Activity (SGA)
Non-Blind Blind |
$1,010/mo. $1,690/mo. |
$1,040/mo. $1,740/mo. |
Trial Work Period (TWP)
|
$720/mo.
|
$750/mo.
|
Maximum Social Security Benefit: Worker Retiring at Full
Retirement Age:
|
2012
|
2013
|
$2,513/mo.
|
$2,533/mo.
|
|
SSI Federal Payment Standard:
|
2012
|
2013
|
Individual
|
$698/mo.
|
$710/mo.
|
Couple
|
$1,048/mo.
|
$1,066/mo.
|
SSI Resources Limits:
|
2012
|
2013
|
Individual
|
$2,000
|
$2,000
|
Couple
|
$3,000
|
$3,000
|
SSI Student Exclusion:
|
2012
|
2013
|
Monthly limit
|
$1,700
|
$1,730
|
Annual limit
|
$6,840
|
$6,960
|
Estimated Average Monthly Social Security Benefits Payable
in January 2013:
|
Before
1.7% COLA |
After
1.7% COLA |
All Retired Workers
|
$1,240
|
$1,261
|
Aged Couple, Both Receiving Benefits
|
$2,014
|
$2,048
|
Widowed Mother and Two Children
|
$2,549
|
$2,592
|
Aged Widow(er) Alone
|
$1,194
|
$1,214
|
Disabled Worker, Spouse and One or More Children
|
$1,887
|
$1,919
|
All Disabled Workers
|
$1,113
|
$1,1
|
No comments:
Post a Comment