When working, a little bit of the salary that you receive will be taken and added to your social security trust fund. For every $1050 that was earned in 2008, one credit was given, and there was a maximum of four credits given every year. The amount of money that equals one credit is adjusted higher every year. In 2011, $1,120 of a person’s earnings is equal to one credit, and the maximum credits this year is still four. Earning these social security credits from the years that you work in a job qualifies you for social security benefits.
There are various rules that apply for different jobs and how workers can get credit from social security. For instance, if one is self-employed, they get credit from social security the same way that employees do, however, for net annual earnings that are less than $400, other rules apply. If one does military work, then they too get the same credit from social security as any other employee does. This, however, was not the case not too long ago. There are special rules on different jobs, such as farm work, domestic work, and work for a church that does not pay social security taxes. It would be beneficial for one to seek information about the different social security rules on the jobs listed above.
All in all, the social security credits are sometimes referred to as a quarter of coverage. It is a measure of a person’s work under the social security program. A self-employed worker has to have net earnings of $400 so as to be eligible to get credit from social security, as was mentioned above. While, an employee needs to earn wages so that $1,120 can be counted for as one credit.