[Ohio-talk] 2016 Social Security Changes

[Suzanne Turner]

colafacts2016.pdf

2016 SOCIAL SECURITY CHANGES 

o Cost-of-Living Adjustment (COLA): 

Monthly Social Security and Supplemental Security Income (SSI) benefits will
not automatically increase in 2016 as there was no increase in the Consumer

Price Index (CPI-W) from the third quarter of 2014 to the third quarter of
2015. Other important 2016 Social Security information is as follows: 

2015 2016 

o Tax Rate: 

Employee 7.65% 7.65% 

Self-Employed 15.30% 15.30% 

NOTE: The 7.65% tax rate is the combined rate for Social Security and
Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the
applicable

taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on
all earnings. Also, as of January 2013, individuals with earned income of
more

than $200,000 ($250,000 for married couples filing jointly) pay an
additional 0.9 percent in Medicare taxes. The tax rates shown above do not
include the

0.9 percent. 

o Maximum Taxable Earnings: 

Social Security (OASDI only) $118,500 $118,500* 

Medicare (HI only) N o L i m i t 

o Quarter of Coverage: $1,220 $1,260 

o Retirement Earnings Test Exempt Amounts: 

Under full retirement age $15,720/yr. $15,720/yr.* 

($1,310/mo.) ($1,310/mo.) 

NOTE: One dollar in benefits will be withheld for every $2 in earnings above
the limit. 

The year an individual reaches full $41,880/yr. $41,880/yr.* 

retirement age ($3,490/mo.) ($3,490/mo.) 

NOTE: Applies only to earnings for months prior to attaining full retirement
age. One dollar in benefits will be withheld for every $3 in earnings above

the limit. 

There is no limit on earnings beginning the month an individual attains full
retirement age. 

o Social Security Disability Thresholds: 

Substantial Gainful Activity (SGA) 

Non-Blind $1,090/mo. $1,130/mo. 

Blind $1,820/mo. $1,820/mo.* 

Trial Work Period (TWP) $ 780/mo. $ 810/mo. 

o Maximum Social Security Benefit: Worker Retiring at Full Retirement Age: 

$2,663/mo. $2,639/mo.** 

o SSI Federal Payment Standard: 

Individual $ 733/mo. $ 733/mo.* 

Couple $1,100/mo. $1,100/mo.* 

o SSI Resources Limits: 

Individual $2,000 $2,000 

Couple $3,000 $3,000 

o SSI Student Exclusion: 

Monthly limit $1,780 $1,780* 

Annual limit $7,180 $7,180* 

o Estimated Average Monthly Social Security Benefits Payable in January
2016: 

All Retired Workers $1,341 

Aged Couple, Both Receiving Benefits $2,212 

Widowed Mother and Two Children $2,680 

Aged Widow(er) Alone $1,285 

Disabled Worker, Spouse and $1,983 

One or More Children 

All Disabled Workers $1,166 

* Because there is no COLA, by law these amounts remain unchanged in 2016. 

** A decrease in full maximum benefits occurs when there is no COLA, but
there is an increase in the national average wage index.