We attempt to clarify your advantages utilizing easy-to-understand, plain language. The Plain Writing Act of 2010 requires federal businesses to speak info clearly in a manner “the general public can perceive and use.” This may be significantly difficult when speaking about difficult packages like Social Safety, Supplemental Safety Earnings, and Medicare.
Take a second to study a couple of widespread Social Safety phrases and acronyms!
COLA
This stands for “Price-of-Dwelling Adjustment.” With COLAs, Social Safety and Supplemental Safety Earnings advantages preserve tempo with inflation. Most years, your month-to-month profit quantity will get a COLA, which normally means extra cash.
Credit
As you’re employed and pay Social Safety taxes, you earn credit – beforehand known as “Quarters of Protection” – that rely towards your eligibility for future Social Safety advantages. You possibly can earn a most of 4 credit annually. Most individuals want 40 credit to qualify for advantages. Youthful individuals want fewer credit to qualify for incapacity or survivors advantages. For extra info, see our publication overlaying Social Safety Credit.
Earnings File
That is the chronological historical past of the amount of cash you earned annually throughout your working lifetime. Your credit stay in your Social Safety earnings report even if you change jobs or haven’t any earnings for a time period. Evaluate your earnings report with a private my Social Safety account.
FICA
This stands for “Federal Insurance coverage Contributions Act.” It’s the tax withheld out of your wages that funds the Social Safety and Medicare packages.
Now, if any of those phrases or acronyms comes up in dialog, you possibly can assist clarify what they imply. Go to our on-line glossary to study extra of our terminology and deepen your understanding of how Social Safety works for you.
Tags: COLA, FICA, Basic Info, my Social Safety, my Social Safety account, on-line companies, social safety, Social Safety advantages
