Social
Security column
Young workers, meet Social Security
By Joan Fafoglia, Social Security assistant district
manager in Springfield
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[July 06, 2013]
SPRINGFIELD -- Welcome to the
workforce, new workers! Whether you're beginning the career of a
lifetime or just earning some extra money for the school year to
come, there is one question that is likely to hit you when you see
your first pay stub: "What is the FICA, and why is my paycheck less
because of it?"
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Generally, employers are required to withhold Social Security and
Medicare tax from a worker's paycheck. Your employer matches the
amounts you pay in Social Security and Medicare taxes. Usually the
money withheld is referred to as "Social Security taxes" on the
employee's payroll statement. Sometimes the deduction is labeled as
"FICA taxes," which stands for Federal Insurance Contributions Act,
and sometimes OASDI, or Old Age Survivor and Disability Insurance.
Name aside, what's important is how that money is being used and
what's in it for you down the road.
The taxes you pay now will translate to a lifetime of protection,
when you eventually retire or if you become disabled. If you die,
your dependent children and spouse may be able to receive survivors
benefits based on your work. Today you probably have family members
-- grandparents, for example -- who already enjoy Social Security
benefits that your Social Security taxes help provide.
You may be a long way from retirement now, so you may find it
hard to appreciate the value of benefits that could be 40 or 50
years away. But consider that your Social Security taxes could pay
off sooner than you think. Social Security provides valuable
disability benefits -- and studies show that a 20-year-old has about
a 3 in 10 chance of becoming disabled sometime before reaching
retirement age.
Don't be tempted if you're offered a job "under the table" or
"off the books." If you work for any employer who pays you cash,
you're likely not getting Social Security credit for the work you're
doing and potentially missing out on future benefits.
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Want to learn more about Social Security and what it means to
young workers? If so, Social Security invites you to watch an online
video: "Social Security 101: What's in it for Me?" The webcast will
fill you in on the details you should know to get the most out of
Social Security. Check it out at
www.socialsecurity.gov/
webinars/social_security_101.html.
Here's another tip: Open a "my Social Security" account so that
you can access your Social Security statement. That will allow you
to make sure your earnings are recorded properly each year -- and
you can get estimates of what your future benefits may be. You can
easily open this account at
www.socialsecurity.gov/myaccount.
If you have questions about Social Security, the best place to go
is www.socialsecurity.gov.
[By JOAN FAFOGLIA;
Social Security office
in Springfield]
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