Chapter 7, part2-Social Security Benefits and Taxation

1/2 Joe's PIA

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? Monthly payments to a disabled worker's spouse, if the spouse is caring for a child under the age of 16, or a disabled child under the age of 22 are made in the amount of 1/2 of the worker's PIA.

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

Kenny is self employed. He owns a book bindery. Which statement accurately describes his Social Security tax obligation? Self-employed individuals must pay the entire Social Security tax (employer and employee portions).

Luka will receive the larger of the two benefits.

Luka is eligible to receive both spousal and retirement benefits. Which of the following is true? When an individual is dually eligible for Social Security benefits, they will only receive the larger of the two benefits.

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

Maria is self-employed. She owns her own ballet studio. Which of the following is true regarding her portion of Social Security tax? Self-employed individuals must pay the entire Social Security tax (employer and employee portions).

Social Security

OASDI is also referred to as: Old Age, Survivors, and Disability Insurance (OASDI) is commonly referred to as Social Security.

65

Social Security disability benefits are payable to a covered disabled worker until the age of: Social Security disability benefits are only available prior to the age of 65.

OASDI

Social Security is also referred to as: The old name for Social Security is OASDI, or Old Age, Survivors, and Disability Insurance.

Cumulative; do not need to

Social Security quarters of coverage earned are based on ________ quarters worked, and ________ be earned consecutively. Quarters of coverage earned are based on cumulative quarters worked, and do not have to be earned consecutively.

29 months

Walt is totally disabled and has applied for Social Security disability benefits. How long must Walt wait to be eligible to receive full Medicare benefits? A disabled covered worker, regardless of age, is eligible to receive full Medicare benefits after the waiting period and two years of receiving Social Security disability benefits after 29 months.

40 quarters of credit

A fully insured individual must have which of the following? A fully insured individual must have 40 quarters of credit, for a total of 10 years of work.

Receive the benefit that is larger

A person who is eligible to receive both spousal and retirement benefits from Social Security will: When an individual is dually eligible for Social Security benefits, they will only receive the larger of the two benefits.

60

After a surviving spouse is in their blackout period, the earliest age they can begin to receive survivors benefits is: The surviving spouse is eligible for Social Security survivors benefits upon reaching the age of 60.

Supplemental medical insurance

All of the following benefits are provided by Social Security, EXCEPT: Social Security provides disability, survivors and retirement benefits.

6.20%

Bobette works as a clerk at SAV-MORE convenience store. What is the percent of Social Security payroll tax deducted from her paycheck? The employee's portion of the Social Security tax is 6.2%. The employer pays the other half of Social Security tax.

12 months

How long must an individual's disability be expected to last in order to qualify for Social Security disability benefits? An individual's disability must be expected to last at least 12 months or result in death.

6

How many quarters of coverage are required for currently insured status under Social Security? A covered worker who has accrued at least six quarters of coverage over the past 13 quarters ending with the quarter of disability onset, death or retirement, is currently insured.

a. The year prior to reaching age 62 b. The year of disability onset c. The year prior to death

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: 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: the year prior to reaching age 62; the year of disability onset; or the year prior to death. The correct answer is: All of the above

6 quarters of credit

A Social Security currently insured individual has: An individual must have at least six quarters of credit, or worked 1.5 years, to be currently insured under Social Security.

Fully

A covered worker must be ______ insured to receive Social Security retirement benefits. Social Security retirement benefits are only available to covered workers who are fully insured upon retirement.

Their total PIA

After the 5-month waiting period, Social Security disability benefits are payable to the disabled covered worker in the amount of: Disability income benefits are paid to the covered worker in the amount of their total PIA after a five-month waiting period.

A nurse practitioner who owns their own practice

All of the following individuals would not be covered by Social Security, EXCEPT: The following people are not covered by Social Security: federal employees hired before 1984; police officers who have a retirement program; employees covered by the Railroad Retirement Act; religious workers who have declared a life of poverty; and self-employed individuals with low incomes.

Social Security disability benefits cover partial and short-term disabilities.

All of the following statements are true regarding Social Security disability benefits, EXCEPT: Disabilities must be total and permanent for Social Security disability benefits to pay a covered worker.

Quarters of credit

An individual's Social Security insured status is based on their: The number of quarters of credit an individual has earned determines their Social Security insured status.

How long a covered worker has worked throughout their life

How are Social Security benefits determined? Social Security benefits are based on how long a covered worker has worked throughout their life.

All throughout retirement

How long is the reduction in Social Security retirement benefits effective for a person who retires early? This reduction remains all through retirement.

5 months

How long is the waiting period for disability benefits under Social Security? The waiting period for disability benefits is five months with benefits beginning in the sixth month.

6

How many quarters of credit must an individual have to be currently insured under Social Security? An individual must have at least six quarters of credit, or worked 1.5 years, to be currently insured under Social Security.

Their PIA

How much is the Social Security disability benefit payable to a covered worker? Under Social Security disability benefits, the covered worker will receive monthly payments in the amount of their PIA. At the earliest, the disabled covered worker may be eligible to receive Social Security disability benefits upon the sixth month of disability.

80% of their PIA

How much will a covered worker receive from Social Security retirement benefits if the worker was born in 1960 and retires at age 62? According to Social Security, the normal retirement age for a person born in 1960 or later is 67. Therefore, a person who retires before their normal retirement age will receive a smaller portion of their PIA for retirement benefits. If a covered worker retires at the normal retirement age, they will receive 100% of the PIA. However, if a covered worker retires early at the age of 62, the maximum Social Security benefit is 80% of the PIA.

1/2 his mother's PIA

How much will an unmarried child, Joe, age 19, in his last year of high school, receive from Social Security if his mother becomes totally and permanently disabled? Monthly Social Security disability payments will be made to an unmarried child under age 18 (19 if the child is a full-time high school student), or a child who became disabled before the age of 22 in the amount of the worker's PIA.

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

Social Security retirement benefits include all of the following, EXCEPT: The benefit for dependent children or grandchildren under the age of 18 or 19 is 1/2 the covered worker's PIA.

Primary insurance amount

The amount of Social Security retirement benefits are based on an individual's: The primary insurance amount (PIA) is an individual's average monthly wage earnings and is used to determine the amount of Social Security retirement benefits.

In month 6 of their disability

What is the earliest month a covered worker may begin to receive Social Security disability benefits? At the earliest, a disabled covered worker may be eligible to receive Social Security disability benefits upon the sixth month of disability.

Fully insured

Under which insured Social Security insured status are most benefits paid? Most Social Security benefits are paid to fully insured individuals.

Primary insurance amount (PIA)

What is the basis for Social Security retirement benefits? The primary insurance amount (PIA) is an individual's average monthly wage earnings and is used to determine the amount of Social Security retirement benefits.

Quarters of credit

What is the basis for a person's Social Security insured status? The number of quarters of credit an individual has earned determines their Social Security insured status.

Quarters of credit

What is the basis for established Social Security insured status? Insured status is based on how many quarters of coverage, or credits, a covered worker has earned.

62

What is the earliest a person can retire and begin to receive Social Security retirement benefits? The earliest a person can begin to receive Social Security retirement benefits is age 62. However, the amount will be a smaller portion of the monthly benefit since retirement benefits are being received longer.

62

What is the earliest age at which an individual can begin to receive Social Security retirement benefits? The earliest age that an individual can receive Social Security retirement benefits is 62. The amount of the benefit will be lower than if the individual waited until the normal retirement age of 65.

67

What is the full Social Security retirement age for a person born after 1960? The full retirement age is 65 for covered workers who were born in 1937 or earlier. The full retirement age increases for individuals born between the years of 1938 to 1959 with the maximum retirement age set at age 67 for covered workers who were born in 1960 or later.

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

Which of the following correctly describes Social Security Survivors benefits payable if a covered worker is currently or fully insured upon death? Social Security survivors benefits will provide a lump sum death benefit to the deceased covered worker's widow and eligible children.

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

Which of the following correctly describes Social Security survivors benefits for a covered worker who is fully insured? These are all Social Security survivors benefits. The correct answer is: All of the above

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

Which of the following correctly describes Social Security survivors benefits for a covered worker who is fully insured? These are all Social Security survivors benefits. The correct answer is: All of the above

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

Which of the following employees would not be covered by Social Security? The following people are not covered by Social Security: federal employees hired before 1984; police officers who have a retirement program; employees covered by the Railroad Retirement Act; religious workers who have declared a life of poverty; and self-employed individuals with low incomes. The correct answer is: All of the above

The retiree's sex

Which of the following factors does not affect how much a retiree will receive for Social Security monthly retirement income benefits? The following factors affect how large a retiree's monthly Social Security retirement benefit will be: insured status, PIA and age. The retiree's sex is not a factor.

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 is false regarding eligibility for Social Security disability benefits? The disability must be total and the following must be met: the covered worker cannot do the work they did prior to the disability; the covered worker cannot do other work because of physical or mental conditions; and the disability has already lasted or will last for at least 12 full months, or the disability is expected to result in death.