2014 Social Security Changes

Wondering about all the new Social Security Changes? Let the QB Gal fill you in.
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index ( CPI-W) from the third quarter of 2012 through the third quarter of 2013, Social Security and Supplemental Security Income ( SSI ) beneficiaries will receive a 1.5 percent COLA for 2014. Other important 2014 Social Security information is as follows:

Tax Rate:                                  2013                                                               2014

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 the applicable taxable maximum amount(see below). The Medicure portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicure taxes. The tax rates shown above do not include the 0.9 percent.

Maximum Taxable Earnings:

 Social Security  ( OASDI only)    $113,700                                                          $117,000

Medicare (HI only)                                                     NO LIMIT

Quarter of Coverage                  $ 1,160                                                            $1,200


Retirement Earning Test Exempt Amounts

Under full retirement age                 $15120/yr.                                                  $15,480/yr.
                                                      ($1,260/mo.)                                               ($1,290/mo.)

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

The year an individual reaches full     $40,080/yr                                                 $41,400/yr
  retirement age                                ($3,340/mo.)                                              ($3,450/mo.)

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

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

Social Security Disability Thresholds: 

 Substantial Gainful Activity ( SGA )

Non-blind                                  $1,040/ mo                                                          $1,070/ mo

Blind                                          $1,740/ mo                                                          $1,800/mo

Trial Work Period ( TWP )        $750/mo                                                              $770/mo

Maximum Social Security Benefit : Worker Retiring at Full Retirement Age

                                                   $2,533/mo                                                         $2,642/ mo

SSI Federal Payment Standard:

 Individual                                   $710/mo                                                             $721/mo

Couple                                      $1,066/mo                                                          $1,082/mo

SSI Resource Limits:               

Individual                                 $2,000                                                               $2,000

Couple                                    $3,000                                                               $3,000

SSI Student Exclusion: 

 Monthly Limit                       $1,730                                                                 $1,750

Annual Limit                         $6,960                                                                 $7,060

Estimated Average Monthly Social Security Benfits Payable in January 2014:

                                          Before 1.5% COLA                                           After 1.5% COLA    

All Retired Workers                             $1,275                                                               $1,294

Aged Couple, Both Receiving Benefits   $2,080                                                               $2,111

Widowed Mother and Two Children      $2,583                                                               $2,622

Aged Widow(er) Alone                        $1,225                                                               $1,243

Disabled Worker, Spouse and             $1,914                                                               $1,943
One or More Children

All Disabled Workers                         $1,131                                                                $1,148


Hope this was helpful information. The QuickBooks Gal specializes in helping business owners with QuickBooks, Peachtree, Bookeeping, Payroll,training and support and so much more. If you got a QuickBooks mess call the QuickBooks Gal today! To reach the QuickBooks Gal today go to  http://www.qbgal.com/  or call 775-348-9225.  

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