03 Apr Social Security tax for the semi-retired
Q. I am semi-retired, working 15 hours every two weeks. Why are Social Security taxes still being taken out of my employment check and yet I don’t receive an increase in Social Security?
— Still working
A. You didn’t specifically say so, but it sounds like you’re receiving Social Security.
That won’t stop your boss from withholding taxes.
“All employers are required to withhold from employee’s compensation FICA taxes, which is the Federal Insurance Contribution Act,” said Jody D’Agostini, a certified financial planner with AXA Advisors/The Falcon Financial Group in Morristown.
The withholding is made up of a 6.2 percent Social Security tax up to the Social Security taxable wage base, which for 2018 is $128,400, plus a 1.45 percent Medicare tax.
She said all Social Security recipients received a 2 percent cost of living increase for 2018.
“If you are already receiving Medicare payments, you receive the Social Security check net of your Part B premiums,” she said. “Those premiums, which are indexed based on your household income, did go up this year.”
Maybe that’s why you’re not seeing an increase in your check.
Email your questions to moc.p1553051910leHye1553051910noMJN1553051910@ksA1553051910.