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Social Security
Your Earnings Record
[image: stylized american eagle]
Introduction
The earnings statement we are sending you is a summary of the information in your Social Security earnings record. Your statement shows:
In addition, your statement shows the number of work credits you have. Your statement does not show the amount of Social Security taxes you and your employer have paid. Social Security benefits are based on your lifetime earnings, not on the amount of Social Security taxes you pay.
You should ask us for an earnings statement about every three years to make sure your earnings are properly credited. This is particularly important if you change jobs often, do seasonal work, or work for several different employers.
Your Earnings
The earnings shown on your statement include wages reported by your employer, and any self-employment income you reported on your federal income tax returns.
Social Security began withholding taxes on wages in 1937, but self-employment income was not included until 1951. If you had wages before 1937 or self-employment income before 1951, these earnings are not on your statement.
Taxes On Those Earnings
Most employees know the Social Security tax deduction is 7.65 percent. But some do not know that the deduction is divided into two parts: 6.2 percent is withheld for Social Security taxes and 1.45 percent is withheld for Medicare taxes. On some paystubs, the separate deductions are shown. But on others, they're combined under one category labeled "Social Security" or "FICA."
Each year you pay 6.2 percent Social Security tax on a maximum taxable wage base as follows:
1997 $65,400
1996 $62,700
You also pay 1.45 percent Medicare tax on all your earnings.
If you ever pay Social Security taxes on more than the yearly maximum wages, you can claim a refund of the excess. For information about claiming a refund, contact your Internal Revenue Service (IRS) office.
If your employers reported more than the yearly maximum for you, these earnings may appear on your statement. But no more than the yearly maximum can be used to figure benefits.
If Your Records Do Not Agree With Your Earnings Statement
Contact Social Security right away if your own record of earnings does not agree with the amounts shown on your earnings statement.
If you worked for wages, we will need:
If you have W-2 forms, pay slips, or any other proof of the wages, have them available when you contact us.
If the earnings in question were from self-employment, give the date you filed your tax return and the location of the IRS office where you sent it. Also, you'll need copies of your tax returns for the years in question, and if you have them, cancelled checks showing proof of filing.
How Much Work Credit You Need To Get Social Security
You must have credit for a certain amount of work covered by Social Security before any benefits can be paid on your record. In 1997, you earn four credits (the maximum) if your annual earnings are $2,680 or more. (You earn one credit for each $670.) The amount needed for each credit will increase in future years to reflect increases in average wages.
The number of credits you have and the number you need for retirement benefits are shown on your earnings statement just below the total of your earnings. Any railroad credits that were counted also are shown. Most people need 40 credits to be eligible for benefits. But some people need fewer credits depending on their age and the type of benefits involved.
For more information about Social Security work credits, contact Social Security to ask for the free leaflet Social Security—How You Earn Credits (Publication No. 05-10072).
Special Rules For Some Work
Almost all employment and self-employment are covered by Social Security, but special rules apply to some work.
Government Employees
Most federal employees hired after 1983 are covered by Social Security. Most federal employees hired before 1984 have been covered for Medicare since 1983. If you were a federal employee as of January 1983, your Medicare-covered earnings are shown on your earnings statement.
Medicare-only coverage has also been extended to many state and local government employees not covered by Social Security. Most employees hired after March 1986 are covered for Medicare. And, at the state's option, employees hired before April 1986 may be covered. If you have Medicare coverage, your Medicare covered earnings are shown on your earnings statement.
If you are eligible for your own Social Security and you receive a government pension, your Social Security benefit may be lowered. For more information, call Social Security to ask for a copy of the factsheet A Pension From Work Not Covered By Social Security (Publication No. 05-10045).
Military Service
Basic pay received while on active duty (or active duty for training) in military service after 1956 is covered by Social Security and recorded on your earnings record. Pay received while on inactive duty (such as weekend drills) has been covered since 1988.
Also, if you served in the military any time since September 1940, you may be eligible for additional free earnings credits. These free credits don't appear on your earnings statement. When some-one applies for benefits, you or your survivors will be asked about your military service. If the free credits would make the difference between eligibility and not being eligible, or would mean higher benefits, the Social Security representative will ask for proof of military service, including attendance at a service academy.
Railroad Service
Railroad workers have a separate retirement system administered by the Railroad Retirement Board. Pay for railroad work is not counted for Social Security if you have 10 or more years of railroad service. But, if you have fewer than 10 years of railroad service, your railroad earnings are transferred to Social Security and count toward your eligibility for Social Security benefits.
If you worked in the railroad industry fewer than 10 years, your railroad earnings are included in the Social Security earnings shown on the statement. If the statement shows work credits, any rail-road service you have that counts for Social Security was included in counting the credits.
For more information about railroad service, contact the Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611.
For More Information
You can get more information by calling Social Security's toll–free number, 1-800-772-1213. You can speak to a service representative between the hours of 7 a.m. and 7 p.m. on business days.
Our lines are busiest early in the week and early in the month so, if your business can wait, it's best to call at other times. Recorded information and services are available 24 hours a day, including weekends and holidays.
People who are deaf or hard of hearing may call our toll-free "TTY" number 1-800-325-0778 between 7 a.m. and 7 p.m. on business days.
You also can reach us on the Internet. Type http://www.ssa.gov to access Social Security information.
The Social Security Administration treats all calls confidentially—whether they're made to our toll–free numbers or to one of our local offices. We also want to ensure that you receive accurate and courteous service. That is why we have a second Social Security representative monitor some incoming and outgoing telephone calls.
Social Security Administration
SSA Publication No. 0540044
January 1997 (Recycle prior editions)
ICN 460250
Unit of Issue — HD (one hundred)
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