Social Security Administration Insurance

Posted on June 30, 2008 by Dory Sutker

Social Security Administration Insurance


Here is an argument I hear over and over again from clients:“I paid into Social Security for years and I only want to get back the money I put into the system. Why do they make it so difficult for me to get back my own money?”

In reality, when you file a social security disability claim, you are not trying to just get your own money back. Nor would you want just that. Generally speaking, the money a person may have paid into social security over the years would not last very long if that was all a person could receive from the agency.

Let’s look at this a little closer. Most people are aware that employees must pay a tax or contribution usually referred to as FICA. This stands for Federal Insurance Contributions Act. For employees* in 2008 the tax rate (or contribution) is 6.2%** of income up to $102,000. So, the maximum amount a person pays into the system in a year is $6,324. Thus, if you had annual earnings of $102,000 or more in 2008, under the above argument you could only receive $6,324 a year. This translate to a monthly benefit of $ 527.00. This is way below the actual amount a higher earner would receive for his/her monthly benefits.

So, for social security disability purposes, think of your payment of the social security tax like a premium for insurance benefits. When you make a claim on a insurance policy, you expect the insurer to investigate the claim. Accordingly, you should expect SSA to investigate your application.

* The tax rate for self employed individuals is different.
** This does not include the Medicare tax.
Sources: www.ssa.gov; www.nosscr.com

To learn more about social security disability issues, please click here or to read about our social security disability lawyers in Maryland, please visit our website at G&B website.

Tags: , , , , , , , , , ,