Ch 7 Social Security Benefits and Taxation

How long is the waiting period for disability benefits under Social Security?

5 months

Which of the following is not offered as a benefit under Social Security?

Employment training benefits

A covered worker must be ______ insured to receive Social Security retirement benefits.

Fully

Which of the following correctly describes Social Security Survivors benefits payable if a covered worker is currently or fully insured upon death?

Lump-sum death benefit paid to the widow and eligible children of the deceased covered worker.

Maria is self-employed. She owns her own ballet studio. Which of the following is true regarding her portion of Social Security tax?

Maria will have to pay the employer and the employee's tax portions.

Social Security retirement benefits include all of the following, EXCEPT:

Monthly payments to a grandchild of the covered worker in the amount of the covered worker's PIA

What is the basis for a person's Social Security insured status?

Quarters of credit

A person who is eligible to receive both spousal and retirement benefits from Social Security will:

Receive the benefit that is larger

Which of the following employees would not be covered by Social Security?

Select one: a. A person hired by the Federal government in 1980 b. A priest that has taken a vow of poverty c. A self-employed, homeless street musician d. All of the above

Which of the following correctly describes Social Security survivors benefits for a covered worker who is fully insured?

Select one: a. Monthly payments to the widow equal to the deceased spouse's PIA if the widow is age 65 or above b. Lump-sum death benefit paid to the widow and eligible children of the deceased covered worker c. Monthly payments to a dependent parent age 62 and above d. All of the above

In order to obtain fully insured status, a covered worker must accrue one quarter of coverage each calendar year after the age of 21 for a total of 40 quarters and minimum of six quarters, upon the earliest of:

Select one: a. The year prior to reaching age 62 b. The year of disability onset c. The year prior to death d. All of the above

How much is the Social Security disability benefit payable to a covered worker?

Their PIA

A fully insured individual must have which of the following?

a. 40 quarters of credit

How many quarters of coverage are required for currently insured status under Social Security?

a. 6

Under which insured Social Security insured status are most benefits paid?

a. Fully insured

How are Social Security benefits determined?

a. How long a covered worker has worked throughout their life

Kenny is self employed. He owns a book bindery. Which statement accurately describes his Social Security tax obligation?

a. Kenny must pay the employer and employee's tax portions.

Joe becomes totally disabled. How much will Social Security pay Joe's wife, who relies on child support payments from Joe, to care for their 12-year twins?

b. 1/2 Joe's PIA

What is the earliest a person can retire and begin to receive Social Security retirement benefits?

c. 62

What is the full Social Security retirement age for a person born after 1960?

c. 67

Social Security is also referred to as:

c. OASDI

What is the basis for Social Security retirement benefits?

c. Primary insurance amount (PIA)

Which of the following is false regarding eligibility for Social Security disability benefits?

c. The disability must have lasted or will last for at least 6 full months or be expected to end in death.

Which of the following factors does not affect how much a retiree will receive for Social Security monthly retirement income benefits?

c. The retiree's sex

Social Security disability benefits are payable to a covered disabled worker until the age of:

d. 65

All of the following individuals would not be covered by Social Security, EXCEPT:

d. A nurse practitioner who owns their own practice

How long is the reduction in Social Security retirement benefits effective for a person who retires early?

d. All throughout retirement

Social Security quarters of coverage earned are based on ________ quarters worked, and ________ be earned consecutively.

d. Cumulative; do not need to

Luka is eligible to receive both spousal and retirement benefits. Which of the following is true?

d. Luka will receive the larger of the two benefits.

After the 5-month waiting period, Social Security disability benefits are payable to the disabled covered worker in the amount of:

d. Their total PIA