The author, initially skeptical about the longevity of Social Security, now understands that while the program may face benefit cuts, it is not at risk of disappearing due to its funding from payroll taxes. They emphasize the importance of not relying solely on Social Security for retirement income and advocate for saving independently to ensure financial security in retirement.
In 2024, Social Security will undergo significant changes that will affect both recipients and higher-wage earners. Benefits will increase by 3.2%, and the income threshold for retirees working before full retirement age will rise, allowing them to earn more without affecting their benefits. For higher-wage earners, the Social Security wage cap will increase from $160,200 to $168,600, meaning they will pay taxes on an additional $8,400 of income. This change will impact self-employed individuals the most, as they must cover the entire tax increase, while salaried employees will share the burden with their employers. The system's fairness is debated, but the wage cap also influences benefit calculations, which some argue balances the impact. Lawmakers continue to discuss further changes to the wage cap.
In 2024, Social Security will undergo significant changes impacting both recipients and higher-wage earners. Benefits will increase by 3.2%, and the income threshold for retirees working while receiving benefits will rise, allowing them to earn more without affecting their Social Security. Additionally, the wage cap for Social Security taxes will increase from $160,200 to $168,600, meaning higher earners will pay taxes on an additional $8,400 of their income. This change will affect salaried employees and self-employed individuals differently, with the latter bearing the full tax increase. The system's fairness is debated, with some advocating for a higher wage cap or its complete removal.
Former NASCAR team owner Ronald Devine has been indicted on federal charges for failing to pay payroll taxes. Devine, the owner and President of BK Racing, allegedly caused the team to fail to account for and pay hundreds of thousands of dollars in payroll taxes between 2012 and 2017. Instead, he transferred over $2 million to other businesses and entities he owned and used some of the funds for BK Racing's expenses. Devine faces a maximum penalty of five years in prison and a $250,000 fine for each of the four counts in the indictment.
