How does the Social Security and Covered Compensation Calculator work?
Free Social Security and Covered Compensation Calculator - Calculates an estimated monthly Social Security Benefit based on a smooth estimate of pay over your work history.
Also calculates a covered compensation amount based on a year of birth
This calculator has 2 inputs.
Also calculates a covered compensation amount based on a year of birth
This calculator has 2 inputs.
What 4 formulas are used for the Social Security and Covered Compensation Calculator?
AIME = Total Wages/(35 * 12)
Tier 1 = 0.9 * min(AIME, Bend Point 1)
Tier 2 = 0.32 * Maximum(Minimum(Bend Point 2, AIME) - Bend Point 1, 0)
Tier 3 = 0.15 * Max(0, AIME - Bend Point 2)
Tier 1 = 0.9 * min(AIME, Bend Point 1)
Tier 2 = 0.32 * Maximum(Minimum(Bend Point 2, AIME) - Bend Point 1, 0)
Tier 3 = 0.15 * Max(0, AIME - Bend Point 2)
What 3 concepts are covered in the Social Security and Covered Compensation Calculator?
- covered compensation
- the average of the taxable wage bases in effect for each calendar year during the 35-year period ending with the last day of the calendar year in which the employee attains social security retirement age.
- salary
- a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.
- social security
- a federal insurance program that provides benefits to retired people and those who are unemployed or disabled
