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Show 1 Page UTAH FARM BUREAU 1968 farmers must report whenever their annual net farm income is $400 or more. You must report your net earnings as a part of your income tax return. from You may be able, however, to use for social security purposes either your actual net earnings or an amount figured under an optional method from your gross farm income. If you have gross farm income of $1,800 or less you may count as your net earnings from farming either your actual net earnings or s of your gross farm income. If your gross farm income is more than $1,800, but your actual net earnings from are less than $1,200, you may report either your actual net earnings or $1,200. Farmers must also keep records of their workers and crew leaders. They must report and pay taxes on each worker who earns $150 or more in cash wages in a year or if a worker works on 20 days or more during the year for any amount of cash paid on a time basis (hour, day, week). Social Security taxes are due by April Payment of 15 at the time income taxes are filed. This tax is due even though no income tax has been paid. Reports on employees must be made by the farm employer to IRS during the month of January following the tax year. If SOCIAL SECURITY BENEFITS self-employ- self-employm- The 1967 amendments to the Social Security Act include: A benefit increase of at least 13 percent This also applies to all individual beneficiaries now on the rolls, with a minimum retirement payment of $55, a maximum individual payment of $160.50 for those now on the rolls, and an eventual $218 maximum. Future increases in family benefits to a maximum of $434.40. An increase from $1,500 to $1,680 in the amount of annual earnings a beneficiary under 72 can have without having benefits withheld. Cash benefits for the disabled widow of an insured worker starting at age 50. A more simplified Medicare program. An increase from $35 to $40 in special benefits to who does not qualify a person over 72 for regular benefits. two-third- self-employm- self-employm- ent Also included were several benefit changes for those under age 65: New benefits are available to disabled survivors at age 50 instead of age 60; and workers becoming disabled before age 31 and dependents of female workers now need less work credits to qualify for benefits. Your local SSA offices have copies of "Recent Improvements in Your Social Security" which explains the above amendments. SSI-1967-- 1, THE FUTURE... Social Security is now on a sound financial basis. The Social Security contributions go into three trust funds, which are kept separate from all other funds in the U. S. Treasury. The monthly premiums paid by those enrolled for voluntary medical insurance goes to a fourth trust fund, as does the matching amount from the Federal government The chairman of the House Ways and Means Committe of the House of Representatives, Wilbur D. Mills, recently reported on Social Security hearings. "The program is actuarially and financially sound. Morebill not only inover, the revisions incorporated in the House-passecrease the present benefits for both older retired persons and the future benefits of younger persons now contributing to the program but and contributory features of the prostrengthen both the wage-related d gram," he said. Russell B. Long, chairman of the Committee on Finance, U. S. Senate, also stated after hearings, "The Social Security system is with- out question financed on an actuarially sound basis. Recently a bill was introduced in the Senate which, if passed, would have provided a 50 percent increase in old age retirement benefits, and a liberalization of other Social Security payments. Under this proposal, one third of Social Security payments would come from eventually sources other than payroll taxes. While this bill has not been enacted, it is an indication of the pressure to liberalize Social Security benefits. These increases are of great concern to farmers who are and who also hire many workers for whom they must also contribute. The pressure to liberalize Social Security benefits is likely to continue, bringing with it increases in taxes. Social insurance in most western European nations moves through three stages. At Stage I the social insurance is very much like private insurance with the costs borne solely by the workers and their employees. Stage II is characterized by almost irresistible pressure to extend coverage to additional persons and additional risks. The poorer, and those who are often unemployed, are brought into the system and part of the expense now comes from contributions from the general revenue. Stage III is reached when there is a general acceptance of the doctrine of assistance without a means test A minimum income for all is provided by social programs. Here are some questions which we need to consider as we think about the future of Social Security: self-employ- FINANCING OF SOCIAL SECURITY Since the Social Security system is largely financed on a self-su- p- Is the tax burden for the benefit of those covered by Social Security likely to become unduly heavy 1 Has the Social Security payroll tax reached such a high level that rather than hiring workers farmers may turn more and more to machinery ? Will we abandon the contributory principle in favor of the social adequacy concept with greater dependence upon general taxation ? Is there a danger that increasing Social Security costs may inter-fe-r with our programs of individual saving, insurance, and property ownership f labor-svain- g The amount of earnings which are taxed will be increased next year. Contributions and benefits are now based, as of 1968, on the first 57,800 of annual earnings. As long as a person has earnings that are covered by the law, he continues to pay the Social Security tax, regardless of his age. 5 |