How Does Social Security Know How Much A Person Has Earned?
First it is important to note that in order for anyone to get credit from social security; they should be doing work for a qualified social security employment career as there are some careers that do not qualify for social security benefits. Social security credits are meant to accumulate automatically through out your career. The rate for accumulating credit was set at $1090 of all net earnings for a single (1) social security credit point in 2009. In one year one should be able to accumulate a maximum of 4 social security credit points. Due to inflation, the standard amount for credit always goes up on annual basis but the margin is relatively small.
How Different Work Groups Get Credit From Social Security For The Years They Have Worked
The Employed or Hired Group
Different work groups will get credit from social security for the years they have worked for but under different set standards. The largest group, that is the employed, will get credit from social security based on the set standard of 2009 at $1090 for 1 social security credit.
The Self Employed Group
For the self employed group, they will get 1 credit from every $400 net earnings on annual basis. However, there is another way for this group to submit their earnings that could allow them to get credit even when their annual net earnings is below the set standard of $400.
The Military Group
For the military personnel, they are ranked the same as the employed group earning 1 social security credit for $1090 net earning. However, they have other means through which they can be able to earn more credits from the social security that are not available to the other groups.