Tax Rate:

2011

2012

Employee

7.65%*

7.65%

Self-Employed

15.30%*

15.30%

NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

* Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced, for wages and salaries paid in calendar year 2011 and self-employment income in calendar year 2011, the OASDI payroll tax by 2 percentage points, applied to the portion of the tax paid by the worker and the self-employed individual.

Section 101 of the Temporary Payroll Tax Cut Continuation Act of 2011 extends the reduction of the tax rate (see * underNOTE in previous column) through the end of February 2012.  (The reduced tax rate for earnings in 2012 applies only to the first $18,350 of a worker’s total wages and self-employment income. The limit of $18,350 is two-twelfths of the $110,100 taxable earnings limit for 2012.)  Unless additional legislation is approved, the tax rate will then revert to the unreduced rate.

Maximum Taxable Earnings:

2011

2012

Social Security (OASDI only)

$106,800

$110,100

Medicare (HI only)

N o   L i m i t

Quarter of Coverage:

2011

2012

Earnings needed to earn one Social Security Credit

$1,120

$1,130

Retirement Earnings Test Exempt Amounts:

2011

2012

Under full retirement age

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

$14,160/yr.
($1,180/mo.)

$14,640/yr.
($1,220/mo.)

The year an individual reaches full retirement age

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.

There is no limit on earnings beginning the month an individual attains full retirement age.

$37,680/yr.
($3,140/mo.)

$38,880/yr.
($3,240/mo.)

Social Security Disability Thresholds:

2011

2012

Substantial Gainful Activity (SGA)
     Non-Blind
     Blind

$1,000/mo.
$1,640/mo.

$1,010/mo.
$1,690/mo.

Trial Work Period (TWP)

$720/mo.

$720/mo.

Maximum Social Security Benefit: Worker Retiring at Full Retirement Age:

2011

2012

$2,366/mo.

$2,513/mo.

SSI Federal Payment Standard:

2011

2012

Individual

$674/mo.

$698/mo.

Couple

$1,011/mo.

$1,048/mo.

SSI Resources Limits:

2011

2012

Individual

$2,000

$2,000

Couple

$3,000

$3,000

SSI Student Exclusion:

2011

2012

Monthly limit

$1,640

$1,700

Annual limit

$6,600

$6,840

Estimated Average Monthly Social Security Benefits Payable in January 2012:

Before
3.6% COLA

After
3.6% COLA

All Retired Workers

$1,186

$1,229

Aged Couple, Both Receiving Benefits

$1,925

$1,994

Widowed Mother and Two Children

$2,455

$2,543

Aged Widow(er) Alone

$1,143

$1,184

Disabled Worker, Spouse and One or More Children

$1,826

$1,892

All Disabled Workers

$1,072

$1,111