Social Security for Seniors

For millions of retirees, Social Security provides an essential source of income in retirement. In 2020, around 50 million retired workers collected Social Security benefits, according to the Social Security Administration.

However, the recent 2022 Social Security Trustees report finds that in 2034, retirees will start receiving a reduced benefit if Congress doesn’t fix funding issues for the social program. In other words, Social Security will exist after 2034, but retirees will only receive 77% of their full benefit starting then.

In order to understand why Social Security is facing a long-term financing issue, it’s important to know how Social Security works. creates a comprehensive guide hoping to help the elderly access the information they need about social security benefits. Read more about it here

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Employers and Payroll Bonuses

Payroll withholding problems with bonuses can arise due to the way bonuses are taxed. Bonuses are typically taxed differently from regular salary payments, which can lead to confusion and errors in payroll withholding.

One issue is that bonuses are often subject to a flat tax rate that is higher than the employee’s regular tax rate. For example, in the United States, bonuses may be subject to a 22% flat tax rate, while regular salary payments are subject to a progressive tax system that can range from 10% to 37%. This can result in under-withholding of taxes from the bonus payment, leading to a larger tax liability for the employee at tax time.

Another issue is that some employers may include bonuses in the employee’s regular paycheck, which can make it difficult to distinguish between the bonus payment and regular salary. This can lead to errors in calculating the correct amount of … Read More