Chapter 8 Flashcards
What is OASDI?
What is OASDI?
Old age, survivors, and disability insurance
Disability
The inability to perform any gainful work that exists in the national economy.
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Which benefits does the FICA tax fund?
Social Security and Medicare benefits
The primary insurance amount (PIA) is equal to:
Full worker’s retirement benefit at 65
How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?
12 months
An insured’s status under Social Security can be described as _______.
Fully insured
How does one quality as a fully-insured individual under Social Security disability coverage?
Work a total of 10 years/40 quarters.
In determining Social Security retirement benefits….
The PIA is a determination of the amount equal to the worker’s full retirement benefit at the worker’s full retirement age.
What is the current Social Security payroll tax?
6.2%
What is the current Medicare Part A payroll tax?
1.45%
When are Social Security benefits subject to federal income tax when filed individually?
If the beneficiary files an income tax return and his annual income is greater than $25,000.
How are Social Security benefits calculated?
Based on the average monthly wage during working years
PIA (Primary Income Amount) is equal to….
the worker’s full retirement at age 65.
When and how are disability benefits paid to the covered worker?
After a 5 month waiting period in the amount of the PIA.
