Social Security primer for new workers

Teens and young adults planning to get their first summer job or start a career this summer may be surprised to see what’s deducted from their paystubs. 

By law, employers must withhold Social Security taxes from a worker’s paycheck. 

Sometimes these taxes will be labeled Social Security taxes sometimes FICA taxes for Federal Insurance Contributions Act, the name of the original Social Security Act.

Teens and people in their early 20s are probably aware of debates over Social Security, a program of the federal government.

There are those who say Social Security is running out of money and will not be available to young people paying into it now. Others say Social Security is a healthy system and will be able to pay out benefits to those who need them far into the future.

The Social Security taxes all workers pay are used by the government for employees who retire in old age or are disabled. After a person dies, their survivors may receive Social Security benefits as well.

Right now, young people probably have family members - grandparents, for example – collecting Social Security benefits.

Because the early work years are a long way from retirement, many people have a tough time seeing the value of benefit payments not due until decades in the future. 

But Social Security also provides benefits in the event of tragedy. The grim statistics show that of today’s 20 year olds, about one in four will become disabled and about one in eight will die before reaching retirement.

Specifically for summer work, the Social Security administration recommends that if an employer offers to pay “under the table,” employees should refuse. The practice allows employers and workers to shortchange Social Security and it’s illegal.

The Social Security administration also recommends that you don’t carry your Social Security card around with you. It’s an important document that should be safeguarded and protected. Your So cial Security number is a valuable tool for an identity thief. 

For more information, Social Security has an online booklet How You Earn Credits. There is also a video Social Security 101: What's in it for me?

If your Social Security card is lost or misplaced, the oinly way to get one is to go in person to the Social Security office.

The nearest offices to Hopkinton are 100 Concord St., Framingham or 51 Myrtle St., Worcester. This link tells what documents a person needs to get a new card.