What You Must Know About Social Security Are you paying into the social security system? Most workers contribute automatically because employers are required to withhold social security from wages. If you are self-employed, you paid the social security self-employment tax with your annual tax return. The Social Security Administration (SSA) maintains a record showing what each person has contributed. You expect that some day your contributions will be returned to you when you become eligible to receive benefits. What if there are errors in your account? Suppose, for example, an entire year of your contributions is missing? Do you know how to find out, and what to do? You probably never thought about it, but the benefits you will receive are based on your contributions, so it's critical that your file be accurate. There are several reasons for errors, the most common being change of name. If you marry or divorce and change your name without notifying the SSA, your payments may not have been recorded correctly. Unfortunately, some employers may not have made payments on your behalf either. Companies of all sizes get into financial difficulty and cut corners by withholding the required payments on behalf of employees. You'll need to collect your personal records first, starting with W-2s from employers or Schedule SE if you've been self-employed. Then you'll need to get a copy of your earnings record from the SSA. Call 1-800-772-1213 and leave your name and address. You will be mailed a Form SSA 7004 within two weeks. Fill it out and return it to obtain a Summary Statement of Earnings. You can also make the request by e-mail. Access the Web site of the SSA at www.ssa.gov. Compare your personal records with the official ones to be sure they're accurate. If they're not, write immediately to the SSA, supplying copies of your documentation, and ask for a correction. If you are already receiving benefits, it may be too late to correct your own file, but teach your children about the importance of saving their earnings records.
Written by Caryn S. Lennon, J.D. Caryn S. Lennon is an attorney in Washington, D.C. She can be reached at 202-429-2089.
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