By Rhonda Whitenack and Jim Czechowicz
Social Security Public Affairs Office, Minneapolis

The New Year ushers in many changes. One important change is a benefit increase for most people who receive Social Security or Supplemental Security Income (SSI) payments.

Beginning January 2008, a 2.3 percent cost-of-living adjustment (COLA) will be applied to all Social Security and SSI payments. As a result, the average monthly benefit for a retired worker in January 2008 will be $1,079 (up from $1,055) and the average monthly benefit for a disabled worker will be $1,004 (up from $981).

For people who receive SSI, the maximum federal payment amount will increase to $637 (up from $623).

Other Social Security changes in 2008 are also worth noting. For example, in 2008, a worker will pay Social Security tax on up to $102,000 of annual earnings (up from $97,500). The tax rates remain the same. Employees will continue to pay 6.2 percent on their wages and the self-employed will continue to pay 12.4 percent on their net earnings. The Medicare tax rate will continue to be 1.45 percent (2.90 percent for those who are self-employed) and there is no limit on the amount of earnings subject to the Medicare tax.

A worker will earn one credit of coverage after paying taxes on $1,050 in earnings (up from $1,000). As always, four credits may be earned each year and a person generally needs 40 credits to be eligible for retirement benefits.

To learn more about these changes that will take place in 2008 and to find other important Social Security information, visit the Social Security website at www.socialsecurity.gov.

Going online with Social Security. Many people have found a new way to deal with Social Security - by going online.

You can apply for benefits, obtain information, plan for retirement, and request a replacement Medicare card, even apply for extra help with your prescription drug costs all at www.socialsecurity.gov.

Much of your Social Security business can be handled quickly and securely from your own home or office computer. If you just visit our website at www.socialsecurity.gov you will find that you can file for retirement, disability and spouse’s benefits; check the status of your benefit application; change your address and/or phone number, if you receive monthly benefits; sign-up for direct deposit of Social Security benefits; use agency benefit planners to help you better understand your Social Security protection as you plan for your financial future and then use convenient benefit calculators to figure your monthly benefit amounts; find the Social Security office closest to your home; and request a replacement Medicare card.

You can go online to find out almost anything you need to know about the Social Security program. Information is available on subjects ranging from how to get a Social Security number for a newborn to how to go back to work while receiving disability benefits. 

This year, take care of any Social Security business you may have at www.socialsecurity.gov.