Social Security and Medicare

In 1935, the Social Security Act was signed into law by President Franklin D. Roosevelt. Among other provisions, the Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement. The Act has been amended many times since then, but it continues to provide retired workers income after retirement. It also provides retired workers with access to medical insurance under the Medicare provisions.

Social Security and Medicare are administered by the federal government. They are funded by payroll taxes imposed on workers and employers.

Lehigh University and its employees share the cost of Social Security and Medicare taxes. These taxes are based on a percentage of earnings paid to employees and are paid by both the employee and the University. The current rates are:

Social Security - 6.20 percent of earnings up to $97,500 per year

Medicare - 1.45 percent of earnings (no limit on earnings)

For additional information, go to:

 
 

 

SSA Resource for Retirement Planning


The U.S. Social Security Administration (SSA) has an online retirement calculator designed to help people plan for retirement. Unlike other retirement estimators that require the user to insert yearly earnings information into a calculator, the SSA’s Retirement Estimator automatically pulls information from a person’s actual Social Security earnings record. The personalized Retirement Estimator allows the user to compare different retirement options based on differing retirement dates or earnings scenarios. To access SSA’s retirement calculator, click HERE.

                                                 

 

2007 Human Resources, Lehigh University, 428 Brodhead Ave., Bethlehem, PA 18015
Tel (610) 758-3900 Fax (610) 758-6226