Social Security - Eligibility

Question 0

What is maximum number of SS credits that can be earned in one year?

Answer 0

4

Question 1

How many credits are needed to qualify for the following:

SS Retirement Benefits
Medicare

Answer 1

SS - 40

Medicare - 40

Question 2

With regard to SS credits:

1. ) What is the income necessary to earn credit?
2. ) How does the amount of income needed to earn a credit change?
3. ) What is the maximum number of credits that can be earned in 1 year
4. ) What is the minimum number of years needed to earn 40 credits.
5. ) What is the difference in how employees and self employed persons earn credits.

Answer 2

1. ) In 2014, earnings of $1,200 are needed to earn one credit
2. ) It is indexed to inflation
3. ) 4 - To earn 4 credits, one must earn at least $4,800 per year
4. ) 10 years
5. ) There is no difference. The same earnings and other rules apply to both.

Question 3

What rules are applied to determine whether one is an employee versus a contractor?

Answer 3

The “Common Law” test, which entails 20 questions or criteria. However, the test can largely be boiled down to whether the one paying wage has the power to “hire, fire, and supervise.” Other key elements include the ability to set hours, providing tools needed for completing work, is the relationship ongoing, who provides training, and part-time versus full time.

Question 4

Which of the following must participate in SS?

Employees who are common law employees, corporate officers, or statutory employees

Self employed persons

Active duty or Reserve soldiers on active duty or training

Answer 4

All. In another words, almost everyone participates. See question on excluded groups.

Question 5

What are statutory employees?

Answer 5

The following are considered statutory employees, and therefore must participate in SS:

Agent or commission drivers
Full time insurance sales persons
Full time traveling or city salespersons
Home workers
Farm workers

Question 6

What are some of the groups of employees who may be excluded from participation in SS?

Answer 6

Limited partners
Members of certain religious groups
Ministers and certain members of religious orders including Christian Science
Certain church employees
Some state or local employees not covered by a Section 218 agreement
Certain police, fire, or public transportation works if not covered by a Section 218 agreement
Work covered by the Railroad Retirement Act

Question 7

What is the difference in how SSA treats employee wages versus net self-employment income for purposes of earning credits?

Answer 7

There is no difference. $1,200 of wages or net self-employment income earn 1 credit.