{"id":6285,"date":"2011-10-19T10:23:25","date_gmt":"2011-10-19T14:23:25","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6285"},"modified":"2012-10-16T09:45:50","modified_gmt":"2012-10-16T13:45:50","slug":"tip-of-the-week-social-security-administration-announces-2012-increases","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2011\/10\/tip-of-the-week-social-security-administration-announces-2012-increases\/","title":{"rendered":"Tip of the Week: Social Security Administration Announces 2012 Increases"},"content":{"rendered":"
\r\n\t\"Commissioner<\/a>\r\n\t
Commissioner of Social Security, Michael J. Astrue<\/div>\r\n<\/div>The Social Security Administration<\/a> announced\u00a0today<\/a> that the Maximum Taxable Earnings or Social Security Wage Base would increase from $106,800 in 2011 to $110,100 in 2012.<\/p>\n

Social Security Increases Based on CPI Change<\/strong><\/p>\n

Since there was a 3.6% increase in the Consumer Price Index (CPI-W) from the third quarter of 2010 to the third quarter of 2011, the Social Security Wage Base will also increase by 3.6%. This is the first increase in the Social Security Wage base since 2009. Wages are scheduled to be taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $6,826.20. There are proposals to keep the current rate of 4.2% for employees or to reduce it to 3.1%, but none has passed at this time. About 7% of workers who pay Social Security Tax are expected to reach the maximum in 2012.<\/p>\n

Retirement Earnings Test Exempt Amounts Increase for 2012<\/strong><\/p>\n

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $14,160 per year or $1,180 per month in 2011. This will increase to $14,640 per year or $1,220 per month for 2012. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $37,680 per year or $3,140 per month in 2011. This will increase to $38,880 per year or $3,240 per month for 2012. The month an individual reaches full retirement age there is no limit on earnings.<\/p>\n

Quarter of Coverage Amounts Increases to $1,130<\/strong><\/p>\n

Also increasing for 2012 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2011, a credit is earned for every $1,120 of earnings, up to a maximum of four credits. That amount will increase to $1,130 for 2012.<\/p>\n

Social Security Monthly Benefits to Increase in January 2012<\/strong><\/p>\n

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,366 to $2,513. See the table below for other changes in Social Security\u00a0benefits for 2012.<\/p>\n

2012 Social Security Benefits<\/h2>\n\n\n\n\t\n\t\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
<\/th>2011<\/th>2012<\/th>\n\t<\/tr>\n<\/thead>\n
<\/td><\/td><\/td>\n\t<\/tr>\n\t
Maximum Benefit:<\/td><\/td><\/td>\n\t<\/tr>\n\t
Worker Retiring at Full Retirement Age<\/td>$2,366 per month<\/td>$2,513 per month<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
SSI Federal Payment Standard:<\/td><\/td><\/td>\n\t<\/tr>\n\t
Individual<\/td>$674 per month<\/td>$698 per month<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
Couple<\/td>$1,011 per month<\/td>$1,048 per month<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
SSI Resources Limit:<\/td><\/td><\/td>\n\t<\/tr>\n\t
Individual<\/td>$2,000<\/td>$2,000<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
Couple<\/td>$3,000<\/td>$3,000<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
SSI Student Exclusion:<\/td><\/td><\/td>\n\t<\/tr>\n\t
Monthly Limit<\/td>$1,640<\/td>$1,700<\/td>\n\t<\/tr>\n\t
<\/td><\/td><\/td>\n\t<\/tr>\n\t
Annual Limit<\/td>$6,600<\/td>$6,840<\/td>\n\t<\/tr>\n<\/tbody>\n<\/table>\n\n

Contact Vision Payroll Today<\/strong><\/p>\n

Contact Vision Payroll<\/a> if you have any questions on the Social Security changes for 2012 or get further information at Important Facts and Figures<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Commissioner of Social Security, Michael J. Astrue The Social Security Administration announced\u00a0today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $106,800 in 2011 to $110,100 in 2012. Social Security Increases Based on CPI Change Since there was a 3.6% increase in the Consumer Price Index (CPI-W) from the third quarter […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[1668,1199,120,263,28,242],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6285"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=6285"}],"version-history":[{"count":8,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6285\/revisions"}],"predecessor-version":[{"id":6287,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6285\/revisions\/6287"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=6285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=6285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=6285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}