How Does Social Security Know How Much A Person Has Earned?





For millions of senior citizens and people who are physically incapable of working, social security is a primary source of income. The social security administration keeps close track of how much a person has earned and contributed to the system, and from that they determine what your annual benefit will be.

Track Earnings

One way that the social security administration knows how much a person has earned is by tracking their earnings. Every year the federal government will receive report for each wage earner which outlines how much money they earned and how much was contributed to the social program. From here the government will track everyone’s contribution each year and provide each tax payer with a statement outlining how much they are on track to qualify for in the future.

Appeal from Payers

The social security administration will also figure out how much a persona has earned by dealing with appeals from citizens. All citizens are going to be given a statement from the government each year which outlines how much of a benefit they have earned. If a citizen feels that this is understated, they have the right to contest the information. To contest it they will have to provide tax returns and pay stubs which outline how much they have actually paid.

Year Collected

The social security administration will also have to take other factors into consideration when determining how much you have earned. One of these factors is the year that you have collected your benefit. If you collect the benefit as early as you possibly can you will receive less of a benefit for the rest of your life.



3 Responses to “How Does Social Security Know How Much A Person Has Earned?”

  1. Michael McNabb says:

    During my years of employment with another company, I earned much more per year than I am now as a school teacher. Is this taken into account, or is the figure based on the last five years of employment?

  2. Deloris Wilkins says:

    I used to receive a report every year about what I earned in the past year but since I. Retired from my last job I have not received that report. Are you not sending this report anymore. I am working at another job?

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