By Rhonda Whitenack
and Jim Czechowicz
Social Security Public Affairs Office

When people who get Social Security retirement benefits consider taking on part-time work, questions arise. 

The most frequent question is whether new earnings will stop current Social Security payments, and the answer is no. If you have reached your full retirement age (currently between 65 and 66, depending on when you were born), you can make all the money you want, and it will have no effect on your Social Security benefits. If you are younger than your full retirement age all year, there will still be no effect to your monthly Social Security payment - unless you earn more than $12,960 in 2007. If, in fact, you do have such a part-time job, your Social Security payment is only reduced $1 for every $2 you earn above the threshold amount.

Do you have to pay Social Security taxes on earnings if you are already getting Social Security? Yes, you do. Whether you're 16 or 96, your employer is required by law to withhold payroll taxes. 

Finally, will those extra Social Security taxes equate to higher benefits? Maybe, but probably not. Your Social Security benefit is figured based on your average monthly wage during the highest earnings years on your record. If your average monthly wage for an entire year is more than what it was before you retired, we'll refigure your benefit and give you an increase. Most part-time workers don't get such an increase, because earnings usually are not enough to raise your monthly average. But if a raise is due, your increase will come automatically.

To learn more about part-time work and Social Security, visit our website at www.socialsecurity.gov or call us at 800/772-1213 (TTY 800/325-0778).  You may ask for a copy of our publication, How Work Affects Your Benefits (SSA Publication No. 05-10069), or visit the online version at http://www.socialsecurity.gov/pubs/10069.html