I am on Social Security now, and still working. Where does all that SS [contribution] that is deducted from my check every week go? Not to me. Is there a way to exempt out of SS, since I am receiving it now? – Michael
We like how you think, but there is no way to “opt out” of paying your Social Security payroll taxes. These taxes are deducted from every worker’s paycheck to the tune of 6.2 percent. There is also a payroll tax for Medicare of 1.45 percent. Back in the 1960s there were eight workers paying into Social Security for every one drawing benefits. Today that number is closer to 3 to 1, so your money that is being withheld is part of what is being paid out to Social Security recipients everywhere.
The good news is that if your latest salary positively impacts your earnings record, your Social Security benefit will increase. The folks at Social Security Administration automatically recalculate your benefit each year, so no action is required on your part.