If you live in Cherry Hill and want to know what kind of social security benefits you could gain, it is good to know how things work. Although it is not easy for a non-technical person to understand all those proportions and percentages but still following discussion will help you a lot and you can always go to a social security lawyer to know more about this. Social security disability lawyers can help you win a lot more benefits than you can personally know you were entitled to.
The largest component of OASDI is the payment of retirement benefits. These retirement benefits are a form of social insurance that is heavily biased toward lower paid workers to make sure they do not have to retire in relative poverty. With few exceptions, throughout a worker’s career, the Social Security Administration and the Internal Revenue Service (IRS) keeps track of his or her earnings and requires Federal Insurance Contribution Act, FICA or Self Employed Contribution Act, SECA, taxes to be paid on the earnings. The OASI accounts plus trust funds are the only Social Security funding source that brings in more than it sends out.
The disability insurance (DI) taxes of 1.4% are included in the OASDI rate of 6.2% for workers and employers or 12.4% for the self-employed. Outgo of $140.3 billion while having income of only $109.1 billion means the disability trust fund is rapidly being depleted and may require either revisions on what “disabilities” are included/allowed/defined as, fraud minimization or tax increases.
The Medicare hospital insurance, HI, (Part A: Hospital Insurance, inpatient care, skilled nursing facility care, home health care, and hospice care) expenditure rate of $266.8 billion in 2012 while bringing in only $243.0 billion means that the Medicare HI trust funds are being seriously depleted and increased taxes or reduced coverage will be required. The additional retirees expected under the “baby boom bulge” will hasten this trust fund depletion. Medicare expenses, tied to medical costs growth rates, have traditionally increased much faster than GDP growth rates.
The Supplementary Medical Insurance, SMI, (otherwise known as Medicare Part B & D) expenditure rate of $307.4 billion in 2012 while bringing in only $293.9 billion means that the Supplementary Medical Insurance trust funds are also being seriously depleted and increased tax rates or reduced coverage will be required. The additional retirees expected under the “baby boom bulge” will hasten this trust fund depletion as well as legislation to end the Medicare Part D medical prescription drug funding “donut hole” are all tied to medical costs growth rates, which have traditionally increased much faster than GDP growth rates.
For workers the Social Security tax rate is 6.2% on income under $127,200 through the end of 2017. The worker Medicare tax rate is 1.45% of all income—employers pay another 1.45%. Employers pay 6.2% up to the wage ceiling and the Medicare tax of 1.45 percent on all income. Workers defined as “self-employed” pay 12.4% on income under $113,700 and a 2.9% Medicare tax on all income.
The amount of the monthly Social Security benefit to which a worker is entitled depends upon the earnings record they have paid FICA or SECA taxes on and upon the age at which the retiree chooses to begin receiving benefits. That’s why a lawyer can always help you gain more benefits.