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[RESOLVED!] Is Oasdi The Same As Social Security?

If you’ve ever looked at the details on your paycheck stub, you’ve probably run into the alphabet soup of deductions and withholdings that reduce the amount of money you get to take home on payday 🙈 One common item you might find on your paycheck is OASDI tax 😊 OASDI is an acronym for Old Age, Survivors, and Disability Insurance Tax 😉 The money your employer collects from you goes to the Federal Government to help fund Social Security. Even for people who make too much to owe income taxes, OASDI is usually deducted from every $1 you earn from your job. [1]
You can earn up to four credits per annum if you work for OASDI and contribute money. The way that employees are able to earn credits has evolved over time. Prior to 1978, earnings were reported by employers every three months. However, in 1978 employers started reporting the earnings of their employees once per year. Credits are calculated based upon an employee’s annual total wage and any self-employment income. It is possible to work all year for four credits, or just enough time to get them in one go. To receive one credit, workers must make $1,220 in 2015. Social Security work To receive maximum 4 credits per year, credit must be paid in cash and $48,880. Anderson Collins amended the above on November 10, 2020 [2]
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Ssa.gov The report also mentions that approximately 57 million people had received monthly benefits of about $65 Billion at December 2012. In 2012, $775 billion was paid to beneficiaries. Social Security Trustees Report 2012 shows that 4.8 percent of total OASDI fund expenditures in 2012 was spent on the nation’s GDP. During the same year, approximately 161 million employees and self-employed workers, along with employers, contributed $590 billion to the OASDI trust funds—through which contributions are credited and benefits are paid. An additional $114 billion was transferred from the general fund of the Treasury to the OASDI trust funds to compensate for the lower payroll tax rate in effect For 2011 and 2012. Last edited by Jasin HUTCHISON, Jiddah (Saudi Arabia), 36 days ago [3]
Contributions can come in the form of payroll taxes or self-employment tax under the Federal Insurance Contributions Act, (FICA), or the Self-Employment Contributions Act, (SECA). The employer matches the contribution of the employee, but self-employed workers must pay the same amount as the total employer-employee payments. Employers match the employee contribution, while self-employed workers pay an amount equal to the combined employer-employee contributions. Tax deduction This will reduce the burden of having to pay the higher rates. There is a maximum yearly amount of earnings subject to OASDI taxes—$132,900 in 2019. Medicare Hospital Insurance has no maximum earnings limit. Employers who have earned more than the maximum amount taxable can claim a refund of FICA payments. [4]
Mari Grossman ssa.gov Additional information. August 2006 marked the 50th Anniversary of the Old-Age, Survivors and Disability Insurance Program (OASDI). This program is operated by Social Security Administration. There’s another SSA Disability Program that was created under the President Nixon, and it is Supplemental Social Income (SSI). SSI is available to eligible people with limited resources, income, and disabilities, as well as those 65 and older. SSI benefits can also be available for blind or disabled children. These monthly benefits cover the had cost of shelter, food and clothing. SSI benefits don’t depend on past work. Instead, SSI is financed by general funds of the U.S. Treasury—personal income taxes, corporation taxes, and other taxes. Both programs have the same medical criteria for disability for people aged 18 and older. A separate definition of disability is available for SSI kids younger than 18. More SSI programme information is available at http://www.socialsecurity.gov/notices/supplemental-security-income. [5]

Refer to the Article

  1. https://www.fool.com/taxes/what-oasdi-tax-is-and-why-you-should-care.aspx
  2. https://www.findlaw.com/socialsecurity/basics/what-is-oasdi.html
  3. https://www.ssa.gov/policy/docs/statcomps/supplement/2013/oasdi.html
  4. https://www.ssa.gov/policy/docs/statcomps/supplement/2019/oasdi.html
  5. https://www.ssa.gov/policy/docs/ssb/v66n3/v66n3p1.html
Mehreen Alberts

Written by Mehreen Alberts

I'm a creative writer who has found the love of writing once more. I've been writing since I was five years old and it's what I want to do for the rest of my life. From topics that are close to my heart to everything else imaginable!

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