Labor Day is usually associated with cookouts, the end of summer, and going back to school. Now that you have your first job, you’re learning the true meaning behind this holiday. From today on, when Labor Day rolls around, you’ll think of the hard work you put in during the year. What you should also think of is how the fruit of that labor will one day translate into Social Security benefits for you and your family.
Social Security is here with benefits, tools, and information to help you secure today and tomorrow. Here’s some things you should know:
- When you work, two types of federal taxes are deducted from your wages: 6.2% of your gross wages goes toward Social Security taxes and 1.45% goes to Medicare taxes. These are FICA taxes. FICA stands for “Federal Insurance Contributions Act.” This is the law that funds both Social Security and Medicare through payroll taxes. Employees share this cost with their employer.
- Your FICA contributions earn Social Security credits. You can earn up to four credits a year. Most of today’s workers need at least 40 credits to be eligible for retirement benefits. That’s about ten years of work.
- These mandatory contributions are there to protect you. Disability could happen at any moment in our lives. If it does, Social Security is there for you, and your family, or future family.
Social Security is much more than a retirement program. We pay benefits to workers who become severely disabled, and to certain surviving family members when a worker dies. The number of credits you need to qualify for these benefits depends on your age when you become disabled or die.
Do you have a personal my Social Security account? If not, open yours today. With a personal my Social Security account, you can get your Social Security Statement to review estimates of your future retirement, disability, and survivors benefits; review your earnings to verify the amounts posted are correct; and see estimated Social Security and Medicare taxes you’ve paid. You’ll find it’s easy, convenient, and secure.
Your contributions help to provide benefits that improve the quality of life for generations to come. Visit our website and learn how Social Security is with you throughout life’s journey.