The Key West citizen., 1954-12-29
Changes ahead For 1855
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WASHINGTON R-New Years
Day brings new look to the ma
tons vast program of retirement
benefits for the aged and of death
benefits to widows and surviving
children of wage earners.
Sooner or later, this new look
embodied in amendments to the
social security law taking effect
Jan. will affect the pocketbooks
of more than 8 out of 10 Ameri-
cans. It virtually fulfills the long
time dream of social security plan
ners-retirement income for every
body.
The new law brings up to 101a
million persons under the Old Age
and Survivors Insurance system
for the first time - farm oper-
>tors, farm laborers, domestic
workers and self-employed archi-
tects, engineers, accountants and
funeral directors on compulsory
basis; state and local government
employees and clergymen on an
optional basis. After 18 months
coverage, many of these will be
eligible for benefits for the first
time.
The new law also increases bene-
fits for everyone in the system
(some increases took effect in Oc-
tober), increases taxes for Som<,
and provides new advantages for
millions of disabled workers and
for other millions who want to con-
tinue some work and still draw
retirement benefits.
About $500, 900 farm operators
people farming for themselves -
are covered for the first time. To
qualify. they must make as much
as $50 profit a year. They must
report on their income and pay a
3 per cent social security tax on
earnings up to $4,000 a year. Their
first new social security returns
will be due with income tax re-
turns on 1855 earnings, filed early
in 1856.
Farm operators get a number of
special privileges. If their total
income (receipts) for the year is
below $500, they don't have to
figure their net income, or actual
profit or earnings. They can arbi-
trarily report half their gross in
come as their net. Or they can
figure their net if they choose to
do so.
If their total income is above
81 800, they have to figure their
profit. If these net earnings are
less than 5000, the farm operator
can report his actual earnings or
report an arbitrary figure of 5000
whichever he chooses. If his net is
above $500, he must report the
actual figure.
In addition, some 2,1O0, 900 farm
laborerS-people doing farm work
for others-are covered for the
first time. Farm laborers were
covered in the past only if they
were regularly" hired by one en-
ployer and received cash wages of
$50 or more per quarter of a year
from that employer.
Now they will be covered if they
are paid as much as S100 by a
single employer in a single year.
The worker himself has no return
to make. For any wages paid after
Friday, the employer is to deduct
2 per cent of the workers wages,
add another 2 per cent from his
own money, and turn all this over
to the government annually, or
whenever the combined tax fund
reaches 500. Workers must obtain
a social security number and card
from his nearest social security
office.
Optional coverage is extended
for the first time to about 315 mil
lion state and local government
employees. Many local governments
already have their own retirement
systems. Under the old law, en-
ployes covered by these systems
could not come under the OASI