Social Security Questions? Ask a Social Security Expert
Hi Jim. My name is ***** ***** I will be happy to help you.
As long as you work for an employer that is covered under social security act (unless you work for a government or school, you most likely are), your employer is required to take social security and Medicare out of your paycheck. After you reach your full retirement age your benefits are not reduced by your earnings, meaning you can earn how much you want and still keep your full benefits, but the social security and Medicare tax must still be withheld.
The social security withholding from your earnings and reduction of benefits before your full retirement age are two separate/unrelated things.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?
Most likely. Last year the government signed some legislation related to social security effective May 1, 2016, but none of them reduced or eliminated social security withholding.
Here's how the withholding works. Your benefits are paid by the current workers withholding. When they retire, their benefits will be paid by their children's withholding. Your withholding are not going into a special savings account with your social security number. The withholding are deposited into a government trust fund that is used to pay social security benefits and administration of the fund. So if somebody tells you that at some point you can work and don't have to have any socials security withheld, he most likely does not know how the system works.
The government trust fund is funded by the withholding and as long as you choose to work, you have to contribute.