More Info About Disability
Social Security Disability Benefits 2016 in a Nutshell
Chances are you are wondering what Social Security Disability benefits are and how much you are eligible for as an applicant. SSI benefits are monthly payments disbursed by the federal or state government to help people who have a disability of some sort, that is, if they can no longer work.
This article will help you understand those benefits a little better and give you an idea of how much you could receive if you are granted a full benefits package. All amounts are taken directly from the SSA and are not guaranteed.
Total amount available Maximum
The amount of Federal Supplemental Security Income (SSI) payments rises whenever living costs go up as it applies to Social Security benefits. In 2016 there is no COLA, so the amount of SSI payment amounts will not increase. Eligible individuals are entitled to a monthly maximum Federal amount of $733 while eligible persons with a spouse $1,100.
Social Security Disability Benefits Depend on Earnings
Assuming that you have passed the disability determination process, the amount that you can receive as SSI retirement benefit depends mostly on lifetime earnings. Using the average wage indexes, the SSA indexes these earnings by converting previous earnings to roughly equivalent values at the time of an individual’s requirement. The NAWI for the past last 3 recorded years are 2012 at 44,321.67, 2013 at 44,888.16, and 2014 at 46,481.52.
So a worker with steady earnings at the maximum level since age 22 that retires at 62 years of age would have a AIME (Average Indexed Monthly Earnings, which is a summary of “maximum” earnings over a lifetime) of $9,431 then your monthly benefit would be $2,102 a month. Same person decides to wait to retire until 65 their AIME would be $8,762 so their monthly benefits would be $2,491. The best AIME to retirement benefit ratio is when a person retires at 70.
At 70 their AIME would be $8,090 and their monthly benefits would be $3,576. These are the maximum amounts a person could receive as social security disability benefits and this is ONLY if a person had contributed the maximum amount through the course of their life.
Contribution and Benefit Base for SSI
The OASDI ( old age, survivors, & disability insurance) caps the amount of annual earnings that is subject to tax each year. The yearly limit equally applies when such earnings are also used to compute the benefits. This changes each calendar year as the NAWI changes. The annual limit is referred to as the contribution & benefit base. In 2016, the base is set at $118,500.
The tax rate for salaries or wages paid in the year 2016 is capped at 6.2 percent for employers and their respective employees. So, a person with pay that is equal to or higher than $118,500 is expected to contribute $7,347.00 towards the program in the year 2016. Their employer would also pay the same amount.
If you are eligible for Social Security Disability benefits, the 2016 OASDI tax rate for persons who are self-employed is 12.4 percent. For members of Medicare’s Insurance program, the maximum taxable amount was similar to that for the OASDI program for the period1966-1990.
Different taxable maximums ranging from $125,000- $135,000 were applied between1991-93. Since 1993, no limitation has been placed on the HI-taxable earnings. Currently, the tax rates charged under HI program stands at 1.45 percent for gainfully employed persons (and their employers) while 2.90 percent for individuals who are self-employed.