Social Security Terms Related To An Applicant’s EarningsBy Kenton Koszdin on June 26, 2018 | In Disability Insurance
The process of applying for Social Security Disability Insurance (SSDI)and Supplemental Security Income (SSI) benefits requires that applicants understand language and terminology related to their earnings and work history. Here is a look at some important terms associated with social security benefits and applicants’ earnings:
AIME (Average Indexed Monthly Earnings)
The Social Security Administration (SSA) uses the AIME dollar amount to calculate and establish the amount of Social Security benefits for applicants who are at least age 62 or became disabled or deceased after 1978. Actual past earnings must be adjusted using an “average wage index,” to retain the value of past earnings in relation to present earnings.
AME (Average Monthly Earnings)
If an individual attains the age of 62 or became disabled or deceased before 1978, the Average Monthly Earnings (AME) is used. To determine the AME, divide the total earnings by the number of months in the computation years.
The base years of a wage earner are the years after 1950 up to the year before entitlement to retirement or disability benefits.
Computation years are the years with highest earnings selected from the base years. The SSA adds total earnings in the computation years and divides by the number of months in these years to get the AME or the AIME.
This refers to the chronological history of the amount of money earned annually during a worker’s lifetime. The credits earned by a worker remain on his or her Social Security record.
FICA (“Federal Insurance Contributions Act”) tax is withheld from a worker’s salary or self-employment income to fund both the Medicare and Social Security benefit programs.
The maximum earnings of a worker are those earnings counted in any calendar year when Social Security benefits are computed.
Social Security Credits
Social Security Credits were originally referred to as “Quarters of Coverage.” Working taxpaying individuals earn credits that count toward eligibility for future Social Security benefits. Workers may earn a maximum of four credits annually. Most people need 40 credits to qualify for benefits for disability or retirement.
Each and every application for disability benefits requires strict attention to a detailed list of factors that affect benefit eligibility. Disability cases are complex and rarely expedient. Applicants must painstakingly observe the formalities, details, time limits, and other deadlines that exist in a disability case. I’ve been through the claims process countless times before and can do it with you, providing you with professional, competent, and zealous representation. Contact us today for your free consultation. Call 800-438-7734 or visit us online. Se habla espańol!