3 Social Security Myths You Shouldn't Believe During COVID-19
The internet makes it easy to access news, but that can be both a blessing and a curse. Just as there's a lot of misinformation circulating about COVID-19 itself, there's also a fair amount of false data to be heard about Social Security. Buying into the following myths is apt to make an already stressful period of life even more harrowing, so don't fall into these traps.
Social Security's primary source of revenue is payroll taxes. This year, employees pay a 12.4% tax on up to $137,700 in earnings. Salaried workers pay half of that 12.4%, and the companies they work for pay the other half. Self-employed workers, meanwhile, pay the entire 12.4%.
Because so many Americans are currently out of a job, and therefore aren't subject to payroll taxes on their wages, it's clear that Social Security is not only losing revenue at present, but it's likely to do so for much of the year. While that may constitute a financial setback for Social Security, there's no reason to believe it will doom the program forever. Once the economy recovers, we're apt to see the unemployment rate decline, at which point Social Security will get to enjoy a healthier revenue stream. Even if current unemployment levels hold steady for another year, it won't be enough to wipe the program out -- not even close.
Source Fool.com
